Free tool
Google Ads budget calculator
Set your ad budget from your own numbers rather than a sector average. Enter your target, see the budget it requires and the point at which the campaign stops being profitable.
Results
Every cent you pay per click above this figure is a loss.
Currency does not matter — just enter every amount in the same one.
What this calculates
The answer to "what should my Google Ads budget be" is never "the average for your sector". Two companies in the same sector can need budgets five times apart because their conversion rates differ. Four things set the right number: your cost per click, your landing page conversion rate, the rate at which enquiries become customers, and your average deal value.
The tool takes those four and works in both directions:
- From target to budget. If you want a given number of customers a month, it works out what you need to spend.
- From budget to outcome. It shows how many customers the budget you have can realistically produce.
The figure that actually decides it: break-even CPC
Most calculators stop at the budget. The number that drives the decision is the break-even cost per click — what a single click is worth to you:
break-even CPC = average deal value × conversion rate × close rate
If your real CPC is above that, the campaign loses money on every click and raising the budget scales the loss. The fix in that case is not more budget — it is a higher conversion rate, or cheaper keywords.
Where to find the numbers
- CPC: in your Google Ads campaign report. Without an account, Keyword Planner gives an estimate.
- Conversion rate: form submissions ÷ sessions in Analytics. If measurement is not set up, fix that first with the GA4 setup guide — a calculation built on bad data is worse than no calculation.
- Close rate: closed deals ÷ enquiries in your CRM. Without a CRM, a rough count of the last three months is a good enough start.
What it does not account for
This is a planning tool, not a guarantee. It leaves out three things: branded searches include customers who were coming to you anyway, repeat business means lifetime value exceeds the first sale, and channels feed one another. In practice someone sees an ad, does not click, and searches your company name two weeks later — last-click attribution credits that sale to search. Read the output as a floor, not a forecast.
The reasoning behind the budget is covered in more depth in what your Google Ads budget should be, and how to split spend between ads and organic in SEO versus Google Ads.
Frequently asked
How do you calculate a Google Ads budget?
Budget is set by arithmetic, not by sector averages. Divide your target number of customers by your landing page conversion rate and your lead-to-customer rate to get the clicks you need, then multiply by cost per click. The formula is: budget = target customers ÷ (conversion rate × close rate) × CPC.
What does break-even cost per click mean?
It is the expected value of a single click: average deal value × conversion rate × close rate. If your actual CPC sits above that figure, the campaign loses money on every click, and raising the budget only increases the loss.
Is there a minimum Google Ads budget?
Google sets no floor, but there is a practical one: you need roughly 30–50 clicks a month before the data supports a decision. At a $3.50 CPC that is about $105–175 a month. Below that, you are guessing rather than measuring.
What if I do not know my conversion rate?
Assume 2–3% to start, measure it over the first 30 days, then recalculate with the real figure. Starting with an estimate is fine; continuing with one is not.
If the numbers do not add up, the problem is rarely the budget — it is the setup. Let us look at your account and tell you where the money is going.
Have your ad account reviewed