Google Ads Budget Calculator
Calculate your Google Ads budget based on target CPC, desired clicks, conversion rate, and average order value. This PPC budget calculator shows your projected daily and monthly ad spend, cost per conversion, monthly revenue, ROAS, and ROI. Includes industry-average CPC benchmarks for 8 major verticals.
Enter Values
Sets the industry benchmark CPC for comparison
Use Google Keyword Planner to find your keyword CPC
How many clicks you want your ads to receive per month
Percentage of clicks that become leads or sales (avg: 2-5%)
Revenue per conversion (order value, contract value, or lead value)
Number of months to project total spend and revenue
Result
Enter values above and click Calculate to see your result.
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Formula
How it works: Monthly ad spend equals your cost per click multiplied by the number of clicks you want. Revenue is estimated by multiplying clicks by your conversion rate and average order value. ROAS (return on ad spend) divides revenue by ad spend to show how many dollars you earn per dollar spent on ads. ROI subtracts ad spend from revenue and divides by ad spend for the net percentage return.
Worked Example
How to Plan Your Google Ads Budget
Planning a Google Ads budget requires balancing your cost per click, desired traffic volume, and expected conversion rate. The goal is to find the spend level where your return on ad spend (ROAS) remains profitable after accounting for product costs and overhead. Starting with industry benchmarks and adjusting based on your actual campaign data is the most reliable approach.
- Average Google Ads CPC ranges from $1.16 (e-commerce) to $6.75 (legal), with a cross-industry average of about $2.69
- A ROAS of 4x or higher is considered good for most industries, meaning you earn $4 for every $1 spent on ads
- The average search conversion rate is 3.75%, but top performers achieve 5.31% or higher through landing page optimization
- Daily budgets should be set at monthly spend / 30.4; Google may exceed the daily cap but will not exceed the monthly total
- Cost per conversion (CPA) can be reduced by 10 to 30% using automated bidding strategies like Target CPA
Start with a test budget of $500 to $1,000 per month for 60 to 90 days to gather conversion data before scaling. Use this calculator to model different CPC and conversion rate scenarios to find the budget that delivers profitable returns.
You can also calculate changes using our SEO ROI Calculator, SEO Services Cost Calculator, ROI Calculator, Cost Per Acquisition Calculator or Social Media Management Cost Calculator.
Average Google Ads CPC and Conversion Rate by Industry
Industry benchmark CPCs and conversion rates for Google Search campaigns (2026 averages).
| Industry | Avg CPC | Avg Conversion Rate | Avg Cost/Conversion |
|---|---|---|---|
| E-commerce / Retail | $1.16 | 2.81% | $41 |
| Technology / SaaS | $3.80 | 2.92% | $130 |
| Professional Services | $2.50 | 3.04% | $82 |
| Health and Medical | $2.62 | 3.36% | $78 |
| Legal | $6.75 | 6.98% | $97 |
| Real Estate | $2.37 | 2.47% | $96 |
| Education | $2.40 | 3.39% | $71 |
| Home Services | $3.30 | 4.80% | $69 |
Note: Benchmarks based on 2025-2026 Google Search Network averages. Display network CPCs are 50 to 70% lower. Actual performance varies by keyword competition, ad quality, and landing page experience.
Frequently Asked Questions
How much should I spend on Google Ads per month?
Most small businesses spend $1,000 to $10,000 per month on Google Ads. The right budget depends on your industry CPC, target number of conversions, and profit margins. As a starting point, multiply your target monthly conversions by the average cost per conversion for your industry. For e-commerce, aim for a ROAS of at least 3x to 4x. For lead generation, aim for a cost per lead below 20% of your average deal value.
What is a good ROAS for Google Ads?
A ROAS of 4x (earning $4 for every $1 spent) is considered good for most industries. E-commerce brands typically target 3x to 5x ROAS. B2B and professional services with higher margins can be profitable at 2x to 3x. A ROAS below 2x usually means the campaign is not profitable after accounting for COGS and overhead. Top-performing campaigns in low-competition niches can achieve 8x to 12x ROAS.
What is the average CPC by industry?
Average Google Ads CPC varies dramatically by industry. Legal has the highest average CPC at $6.75. Technology and SaaS averages $3.80. Home services averages $3.30. Health and medical averages $2.62. Professional services averages $2.50. Real estate averages $2.37. Education averages $2.40. E-commerce has the lowest average at $1.16. These are search network averages; display network CPCs are typically 50 to 70% lower.
What is a good conversion rate for Google Ads?
The average Google Ads conversion rate across all industries is 3.75% for search campaigns. E-commerce averages 2.81%. Legal averages 6.98%. Health averages 3.36%. B2B services average 3.04%. A "good" conversion rate is anything above your industry average. Top 25% of advertisers achieve 5.31% or higher. Conversion rates can be improved by optimizing landing pages, ad copy relevance, and audience targeting.
How do I calculate my Google Ads daily budget?
Divide your desired monthly spend by 30.4 (average days per month). For example, a $3,000 monthly budget equals a $98.68 daily budget. Google may spend up to 2x your daily budget on high-traffic days but will not exceed your monthly total. Set your daily budget in Google Ads, and Google will pace spending across the month automatically.
What is cost per conversion and how do I lower it?
Cost per conversion (CPA) is your total ad spend divided by the number of conversions. Average CPAs range from $20 for e-commerce to $75+ for B2B leads. Lower your CPA by: improving landing page conversion rates, using negative keywords to filter irrelevant clicks, testing ad copy variations, targeting more specific long-tail keywords with lower CPCs, and enabling conversion-based automated bidding strategies like Target CPA or Maximize Conversions.
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