Ad budget calculator for small businesses
Start from the customers you want, not a percent of revenue. Enter four numbers and get a monthly ad budget you can judge at the end of the month.
Monthly ad budget
$1,600
- 40 leads needed per month
- Ad spend per customer: $160
- Each customer is worth $1,500, so ad spend is 11% of one customer's value.
Ad spend only, paid to Meta or Google. Management fees are separate. This is arithmetic on your numbers, not a forecast.
How the number is worked out
Monthly ad budget = customers wanted ÷ close rate × cost per lead.
| Customers wanted | Close rate | Leads needed | Cost per lead | Monthly ad budget |
|---|---|---|---|---|
| 5 | 1 in 4 | 20 | $40 | $800 |
| 10 | 1 in 4 | 40 | $40 | $1,600 |
| 20 | 1 in 4 | 80 | $40 | $3,200 |
The number most owners overlook is the close rate. Replying to every lead within a minute is the cheapest way to raise it, because the first business to answer often wins the call. Read the full walkthrough in How much should a small business spend on ads?
Questions about ad budgets
How do I work out my ad budget?
Divide the customers you want each month by your close rate to get the leads you need, then multiply by your cost per lead. For example, 10 customers at a 1 in 4 close rate needs 40 leads, and at $40 a lead that is a $1,600 monthly budget.
What if I do not know my cost per lead yet?
Use a cautious guess for the first month, then replace it with your real number from your ad reports. The calculator is most useful when you rerun it with real numbers.
What is a close rate?
Out of every 10 people who call or fill in a form, how many become paying customers. If you have never tracked it, count last month's enquiries and how many turned into jobs.
Does the budget include your management fee?
No. The result is ad spend only, paid directly to Meta or Google. Management fees are separate and listed on each service page.
Is this a guarantee of results?
No. It is arithmetic on the numbers you enter, not a forecast. Cost per lead and close rate vary by business, offer and market, which is why we start from your own figures.
Want the budget checked against your real account?
Your free audit checks your tracking and gives a budget suggestion for your market.
Get my free audit