Paid Advertising ROI Calculator
How Much Should You Spend On Paid Ads?
Estimated Monthly Budget
How much does your business spend per month on paid ads? The average small/ medium business spends between 5-18% of revenue on marketing. A large percentage of this should be allocated to paid ads. Start with 5% if you want to be conservative with your growth and go from there for more aggressive growth and lead flow.
Projected Cost Per Click
How much is your business willing to pay for a click? On average, businesses should expect to pay $1-$7 or more per click depending on their industry, audience and ad network used.
Target Conversion Rate
How successful is your website at converting visitors into leads? The average website conversion rate is 2.35%. Improving your website, landing pages, or sales funnel to increase conversion rate is one of the most common ways to make paid ads more profitable.
Customer Lifetime Value
What is the total revenue your business can reasonably expect from a single customer? The longer a customer continues to purchase from your company, the greater their lifetime value becomes. For some companies this number may change over time.
Lead to Customer Rate
What is the number of qualified leads that are converted to actual customers? This metric is critical to evaluating the performance of your company’s sales funnel. No universal benchmark for conversion rates is applicable to all companies.
Return on Ad Spend200%