The budget you need to hit a revenue or order goal, from your conversion rate and cost per click.
Plan spend by working backwards from the result you want. Turn your revenue goal into the number of orders it implies, turn orders into the clicks needed at your conversion rate, then price those clicks at your cost per click. If you already think in orders rather than revenue, skip the first step and start from the orders goal directly — the "By orders goal" mode does exactly that.
Your goal is $100,000 in revenue at an $80 average order value, a 2% conversion rate and a $1.20 CPC. Orders = 100,000 ÷ 80 = 1,250. Clicks = 1,250 ÷ 0.02 = 62,500. Budget = 62,500 × 1.20 = $75,000. That implies a $60 CPA and a 1.33× ROAS on the plan.
This is a planning estimate built on assumptions. Real CPC and conversion rate drift with auctions, creative and seasonality, so treat the number as a starting budget and revisit it with actuals as the campaign runs. Before committing, check the implied ROAS against your break-even ROAS — if the plan only clears break-even on paper, thin margins leave no room for the inevitable slippage.
How much should I spend on ads? Enough to buy the clicks your goal needs at your conversion rate and CPC — work backwards from the target rather than picking a round number.
How do you calculate ad budget from a revenue goal? Orders = goal ÷ AOV, clicks = orders ÷ conversion rate, budget = clicks × CPC.
What conversion rate should I use? Your own historical rate for comparable traffic and offer. Averages from elsewhere will mislead the plan.
