Free Tool
Ad Budget Planner
Enter your revenue goals and expected ROAS to get a recommended monthly ad budget with 3, 6, and 12-month projections.
How to Plan Your eCommerce Ad Budget
Setting the right ad budget is one of the most important decisions for any eCommerce brand. Spend too little and you never get enough data to optimize. Spend too much without a plan and you burn cash.
Start with your target monthly revenue. This is the number you want your ad campaigns to generate. Then set your expected ROAS based on historical performance or industry benchmarks. The calculator divides revenue by ROAS to give you the required ad spend.
Adding your average order value unlocks estimated order volume and CPA. These metrics help you validate whether the budget makes sense: if the CPA is higher than your profit per order, you need a higher ROAS target or better margins.
The projection table shows cumulative spend and revenue at 3, 6, and 12 months, giving you a roadmap for planning cash flow and inventory around your growth targets.
Frequently Asked Questions
How much should I spend on ads for my eCommerce store?
A common starting point is 10-20% of your target revenue. If you want $50,000 in monthly revenue and expect a 4x ROAS, you need roughly $12,500 in monthly ad spend. This calculator helps you find the exact number based on your goals.
What ROAS should I target?
It depends on your margins. If your gross margin is 60%, a 2x ROAS is profitable. At 30% margins, you need at least 3.5x to break even. Start conservative (3-4x) when planning budgets, then optimize from there.
When should I scale my ad spend?
Scale when you have consistent, profitable ROAS over at least 2-4 weeks. Increase budget by 15-20% at a time rather than doubling overnight. Monitor CPA and ROAS closely for 3-5 days after each increase.
How do I set an ad budget for a new product launch?
For launches, plan 2-3 months of spend with a testing phase (lower ROAS expectation) followed by a scaling phase. Budget $3,000-5,000 minimum for the first month to gather enough data for optimization. Use this calculator to model the scaling phase.
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