Google Ads Budget Calculator

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.

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.

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.

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.

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.

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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