Ad Budget Calculator
Calculate how much you should spend on ads based on your desired customer count, close rate, and cost per lead.
How many new customers do you want?
% of leads that become customers
Industry average or your historical CPL
Required Monthly Budget
$200/day
$6,000
Leads Needed
To hit customer goal
80
Projected ROAS
$10,000 revenue
1.7x
To acquire 20 customers at 25% close rate, you need 80 leads at $75/lead = $6,000/month. Each customer costs $300 to acquire.
How to Calculate Your Ad Budget
The right ad budget isn't a percentage of revenue—it's based on your customer acquisition economics and growth goals.
Monthly Budget = (Desired Customers ÷ Close Rate) × Cost Per Lead
Example: (20 customers ÷ 25%) × $75 CPL = $6,000/month
This approach ties spending directly to outcomes. You know exactly what you're buying: a specific number of customers at a specific cost.
Budget Ranges by Industry
Typical Monthly Ad Budgets (DFW Service Businesses)
Starting out
$1,500-3,000
Testing phase
Growth mode
$3,000-7,500
Scaling what works
Established
$7,500-15,000
Market leader
Aggressive
$15,000+
Multi-location/regional
Budget ≠ Results
Before You Set Your Budget
Know Your Numbers
Actual close rate, average order value, and realistic CPL for your industry. Don't guess—use historical data or industry benchmarks.
Can You Handle the Leads?
Fast follow-up, staffing capacity, and systems to track everything. More leads without lead handling = waste.
Test Before Scaling
Start with minimum viable budget. Prove unit economics work. Then scale what's proven.
Plan for 3+ Months
Optimization takes time. One month isn't enough data. Commit to testing for at least a quarter.
Frequently Asked Questions
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