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Estimate your ad spend waste with our calculator. Understand how overbidding, poor targeting, and weak messaging impact your budget.
Your total budget spent on ads each month.
Default: 5000
The average cost you pay for each click on your ads.
Default: 2.00
The total number of clicks your ads received.
Default: 2500
Your desired revenue generated for every $1 spent on ads (e.g., 4 for 4:1 ROAS).
Default: 4.0
The total revenue directly attributed to your ad campaigns.
Default: 10000
The percentage of your ad spend paid to an agency for management. (e.g., 10-20%)
Default: 15
This calculator uses a combination of common digital marketing metrics to estimate potential ad spend waste. First, it calculates your current Cost Per Click (CPC) and compares it against an ideal benchmark based on your inputs. It also determines your actual Return On Ad Spend (ROAS) by dividing your ad-generated revenue by your total ad cost.
A dental clinic spends $3,000 monthly on ads but feels like leads are too expensive. They see 1,000 clicks and $6,000 in direct revenue from ads.
Estimated Waste: $1,500 (50% of budget)
The clinic's actual ROAS is 2:1 ($6,000/$3,000), far below their 4:1 target. Their CPC of $3.00 is fine, but the conversion to revenue is weak, suggesting poor targeting or messaging. This indicates a significant portion of their ad spend isn't generating the desired return.
A law firm spends $8,000 per month on Google Ads, getting 2,000 clicks. They have an agency charging 15% of ad spend and generate $24,000 in revenue
Estimated Waste: $1,200 (15% of budget)
The firm's actual ROAS is 3:1 ($24,000 / $8,000), hitting their target. However, the 15% agency fee on top of ad spend ($1,200) means the effective cost is higher. While not "waste" in the traditional sense, understanding total spend is important.
An e-commerce business spends $10,000 monthly, getting only 1,500 clicks. They generate $25,000 in revenue and manage ads in-house.
Estimated Waste: $3,333 (33% of budget)
Their average CPC is very high at $6.67, indicating expensive keywords or poor ad quality scores. While their ROAS of 2.5:1 ($25,000 / $10,000) is close to target, the high CPC suggests significant potential for optimization.
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Armitage tracks these numbers automatically across SEO and paid ads. One dashboard. Updated daily. No manual exports.
See your real numbersThis calculator's estimations are based on industry benchmarks and common digital marketing formulas. We use the CPC formula (Total Ad Cost / Number of Clicks) and the ROAS formula (Revenue / Ad Cost) to assess ad efficiency.
You can tell by looking at your Cost Per Click (CPC) and Return On Ad Spend (ROAS). If your CPC is too high for your industry or your ROAS is low, you are likely wasting money. For example, if you spend $1,000 on ads and only get 50 clicks, your CPC is $20.00, which might be too high for your business.
A good ROAS varies by industry and profit margins. Generally, a ROAS of 3:1 or 4:1 ($3 or $4 revenue for every $1 spent) is considered healthy, meaning you are generating more revenue than you are spending on ads. However, some businesses need a much higher ROAS to be profitable.
Yes, an experienced agency like Armitage Media focuses on precise targeting, effective ad copy, and continuous optimization. We use data to identify underperforming ads and reallocate budget, helping to avoid the 60% waste common in digital marketing. This allows your campaigns to generate a better return.
Many businesses waste ad spend because they lack specialized knowledge in ad platforms, proper conversion tracking, or consistent optimization. They might also fall into common traps like broad targeting or generic messaging that doesn't connect with their specific audience.
Combining SEO and paid ads creates a compound marketing engine. Paid ads deliver immediate leads and data, which can then inform SEO strategy. SEO builds long-term authority and organic traffic, reducing reliance on paid ads over time. This integrated approach ensures both channels work together efficiently, making your overall spend more effective.
Armitage monitors your marketing metrics across every channel, every day. Get a free growth audit to see where you stand.
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