# Google Ads budget calculator: monthly spend, cost per lead and ROAS

> Your Google Ads budget = target leads ÷ conversion rate × cost per click. For example, 50 leads a month at a 4% conversion rate and $2.50 CPC needs 1,250 clicks, or about $3,125 a month — a $62.50 cost per lead. Campaigns are profitable when ROAS (revenue ÷ ad spend) is above break-even ROAS, which is 1 ÷ gross margin.

- Interactive version: https://infikeytechnologies.com/tools/google-ads-budget-calculator
- Type: free instant calculator
- Category: Marketing
- Last reviewed: 2026-10-05
- Publisher: Infikey Technologies (https://infikeytechnologies.com)

## Example result (default inputs)

| Input | Value |
| --- | --- |
| Currency | USD ($) |
| Target leads per month | 50 |
| Landing page conversion rate | 4% |
| Average cost per click | 2.5 |
| Lead-to-customer close rate | 20% |
| Average revenue per customer | 5,000 |
| Gross margin | 60% |

**Monthly ad budget: $3,125.** 50 leads a month at a 4% conversion rate and $2.50 CPC needs about $3,125 a month in Google Ads spend.

Profitable: ROAS of 16x is above the 1.67x break-even, so each extra $1 of spend returns more gross profit than it costs — until CPCs rise as you scale.

| Metric | Value |
| --- | --- |
| Clicks needed | 1,250 |
| Cost per lead | $62.50 |
| Daily budget | $103 |
| New customers per month | 10 |
| Customer acquisition cost | $313 |
| Revenue from ads | $50,000 |
| ROAS | 16x |
| Break-even ROAS | 1.67x |
| Gross profit after ad spend | $26,875 |
| Maximum profitable CPC | $24.00 |

### Monthly spend vs return

| Item | Value | Detail |
| --- | --- | --- |
| Ad spend | $3,125 | 1,250 clicks → 50 leads |
| Revenue from ads | $50,000 | 10 customers × $5,000 |
| Gross profit after ad spend (selected) | $26,875 | revenue × 60% margin − ad spend |

- Treat the first month as a test: real conversion rates and CPCs vary by keyword, location and landing page.

Open this result on the website: https://infikeytechnologies.com/tools/google-ads-budget-calculator?currency=USD&leads=50&conversion_rate=4&cpc=2.5&close_rate=20&deal_value=5000&margin=60

## Use from a link or API

Add these query parameters to https://infikeytechnologies.com/tools/google-ads-budget-calculator (pre-filled page), https://infikeytechnologies.com/tools/google-ads-budget-calculator.md (this plain-text page) or https://infikeytechnologies.com/api/tools/google-ads-budget-calculator (JSON).

| Parameter | Meaning | Accepted values |
| --- | --- | --- |
| `currency` | Currency | one of USD, INR, AED, GBP, EUR |
| `leads` | Target leads per month | number from 1 to 1000000, default 50 |
| `conversion_rate` | Landing page conversion rate | number from 0.1 to 100 (%), default 4 |
| `cpc` | Average cost per click | number from 0.01 to 100000 (in the chosen currency), default 2.5 |
| `close_rate` | Lead-to-customer close rate | number from 0 to 100 (%), default 20 |
| `deal_value` | Average revenue per customer | number from 0 to 1000000000 (in the chosen currency), default 5000 |
| `margin` | Gross margin | number from 1 to 100 (%), default 60 |

- Local service business: https://infikeytechnologies.com/tools/google-ads-budget-calculator?currency=USD&leads=30&conversion_rate=8&cpc=4&close_rate=30&deal_value=800&margin=50
- B2B software: https://infikeytechnologies.com/tools/google-ads-budget-calculator?currency=USD&leads=40&conversion_rate=3&cpc=8&close_rate=15&deal_value=12000&margin=75
- Online store: https://infikeytechnologies.com/tools/google-ads-budget-calculator?currency=USD&leads=300&conversion_rate=2.5&cpc=0.8&close_rate=100&deal_value=70&margin=40
- IT services in India (₹): https://infikeytechnologies.com/tools/google-ads-budget-calculator?currency=INR&leads=50&conversion_rate=4&cpc=60&close_rate=15&deal_value=300000&margin=40

## How it is calculated

- **Clicks needed**: target leads ÷ conversion rate
- **Monthly budget**: clicks × cost per click
- **Cost per lead (CPL)**: budget ÷ leads
- **ROAS**: (leads × close rate × revenue per customer) ÷ budget
- **Break-even ROAS**: 1 ÷ gross margin
- **Maximum profitable CPC**: conversion rate × close rate × revenue per customer × gross margin

## How to set a Google Ads budget

1. Start from the outcome: how many leads or sales do you need each month?
2. Look up the cost per click for your main keywords and locations in Google Ads Keyword Planner.
3. Use your website’s current conversion rate, or a conservative estimate if you have none yet.
4. Calculate the budget, then check it against break-even ROAS before spending.
5. Run for 4–6 weeks, replace the estimates with real numbers and re-plan.

## ROAS vs break-even ROAS

ROAS (return on ad spend) is revenue divided by ad spend. A ROAS of 4x means every 1 spent brought in 4 of revenue.

Break-even ROAS is the point where gross profit exactly covers ad spend: 1 ÷ gross margin. With a 60% margin you break even at about 1.67x; with a 25% margin you need 4x. Comparing the two tells you whether to scale a campaign or fix it.

## The levers that lower cost per lead

- Landing page conversion rate — doubling it halves the cost per lead at the same CPC.
- Keyword intent — terms like "hire", "cost" or "near me" convert better than broad research terms.
- Negative keywords — stop paying for searches that will never convert.
- Quality Score — relevant ads and fast pages lower the CPC you pay for the same position.
- Conversion tracking — feed real leads and sales back into Google Ads so bidding optimises for revenue, not clicks.

## FAQ

### How much should I spend on Google Ads per month?

Work backwards from the leads you need: leads ÷ conversion rate × cost per click. 50 leads at 4% conversion and a $2.50 CPC is about $3,125 a month. Spending much less than this often produces too little data to optimise.

### What is a good ROAS for Google Ads?

Any ROAS above your break-even ROAS (1 ÷ gross margin) is profitable on a gross-profit basis. A business with a 50% margin needs at least 2x; one with a 20% margin needs 5x.

### How do I calculate cost per lead?

Divide total ad spend by the number of leads, or equivalently divide cost per click by conversion rate. A $2.50 CPC with a 4% conversion rate gives a $62.50 cost per lead.

### What is the maximum CPC I can afford?

Conversion rate × close rate × revenue per customer × gross margin. Above that CPC, every new customer costs more in ads than the gross profit they bring.

### Why is my actual cost per lead higher than the estimate?

Common causes are broad match keywords pulling irrelevant searches, slow or unclear landing pages, missing conversion tracking, and competitors raising bids. Fixing tracking and landing pages is usually the quickest win.

## Get expert help

Send these results to an Infikey Technologies specialist from the form on https://infikeytechnologies.com/tools/google-ads-budget-calculator#estimate or via https://infikeytechnologies.com/contact.

More free calculators: https://infikeytechnologies.com/tools.md

## Disclaimer

This calculator is provided free for general information and planning only. Results are estimates based on the inputs you enter and the assumptions described on this page, reference data such as published prices may change, and actual costs and outcomes will differ. Nothing on this page is financial, legal, tax, investment or other professional advice. Infikey Technologies Private Limited, Infikey Technologies LLC and their directors, employees and affiliates make no warranty, express or implied, about the accuracy, completeness or suitability of this tool or its results, and accept no liability for any loss or damage, direct or indirect, arising from its use or from reliance on its results. Verify all figures independently and seek professional advice before making any decision. Use of this tool is at your own risk.