Media budget planner: from revenue target to ad budget
Most budgets start with last year plus a percentage. This starts with the target and walks the funnel backwards, so you can see whether the plan is possible before you commit to it.
How it is calculated
Paid revenue = Revenue target × share from paid media Orders needed = Paid revenue ÷ AOV Clicks needed = Orders ÷ conversion rate Effective CPC = CPC, or CPM ÷ (1,000 × CTR) Ad budget = Clicks × effective CPC Implied ROAS = Paid revenue ÷ Ad budget Implied CAC = Ad budget ÷ Orders
If you enter a break-even ROAS, the planner also works out the conversion rate you would need for the plan to break even at your current cost per click.
How to use the result
Treat the output as a sense check, not a forecast. If the implied ROAS is below break-even, the plan needs a better conversion rate, a higher AOV, a cheaper click or a smaller paid share, and the sensitivity table shows which lever moves the number most.
Questions
How do I calculate how much to spend on ads?
Start from the revenue you need from paid media, divide by AOV to get orders, divide orders by conversion rate to get clicks, and multiply clicks by your cost per click. That gives the budget and the ROAS it implies.
How do I convert CPM to CPC?
Effective CPC equals CPM divided by 1,000 times click-through rate. A ₹180 CPM at a 1.2% CTR gives an effective CPC of 180 ÷ (1,000 × 0.012) = ₹15.
What conversion rate should I assume?
Use your own last 90 days of paid traffic conversion rate, by channel if possible. Blended site conversion rates often overstate paid performance because they include returning and direct visitors.
What share of revenue should come from paid media?
It depends on brand maturity. Young D2C brands often see 60–80% of new revenue from paid; established brands with strong organic, CRM and repeat demand often run at 30–50%.
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