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Calculate your optimal PPC budget to attract qualified leads for your local business or medical practice.
How many new inquiries or leads do you want your PPC campaigns to generate each month?
Default: 30
What percentage of your website visitors typically become a lead? (e.g., 2.5% for 1 in 40 visitors)
Default: 2.5
What is the typical cost you pay for one click on your ads in your industry/market?
Default: 3.50
What percentage of your leads from PPC typically convert into paying customers?
Default: 20
On average, how much revenue does a customer bring to your business over their relationship with you?
Default: 1500
What percentage of your ad spend does your agency charge for managing your PPC campaigns?
Default: 15
The calculator starts by determining the number of clicks you need to achieve your desired monthly leads, based on your website's conversion rate. Then, it calculates the estimated ad spend by multiplying the required clicks by your average Cost Per Click (CPC). Next, it considers how many of those leads convert into customers, allowing you to see the potential customer acquisition from your ad spend.
An HVAC company wants 20 new service calls a month from PPC, with a good website conversion rate and competitive CPC.
Ad Spend: $2,800, Total Budget: $3,220
With a goal of 20 leads at a 3.5% conversion rate, the company needs 571 clicks. At $4.90 CPC, this is $2,800 in ad spend. Adding a 15% management fee brings the total to $3,220. This budget helps them hit their lead target and maintain profitability, considering their average customer value.
A dental practice aims for 40 new patient inquiries monthly. They have a decent conversion rate but face higher CPCs.
Ad Spend: $9,600, Total Budget: $11,040
To get 40 leads with a 2.5% conversion rate, 1,600 clicks are needed. At $6.00 CPC, the ad spend is $9,600. Factoring in a 15% management fee, the total budget is $11,040. This budget is justified by the high lifetime value of a dental patient, ensuring a positive ROI.
A law firm wants 15 high-value client consultations per month, acknowledging high CPCs and a lower conversion rate.
Ad Spend: $10,000, Total Budget: $11,500
Achieving 15 leads with a 1.5% conversion rate requires 1,000 clicks. With a high CPC of $10.00, the ad spend is $10,000. Adding a 15% management fee, the total budget is $11,500. This higher budget is necessary due to the competitive nature of legal services and the significant revenue per client.
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See your real numbersThis calculator uses standard digital marketing formulas to estimate PPC budgets. It assumes average industry benchmarks for conversion rates and CPCs, which can vary based on your specific market, ad quality, and landing page experience. The management fee percentage is a common industry standard.
An effective PPC budget directly supports your business goals. If you are hitting your target number of qualified leads, and those leads are converting into profitable customers, your budget is likely effective. If you're not seeing these results, or if your cost per lead is too high, it's time to re-evaluate. This calculator helps you compare your current spend against a goal-driven budget.
Ad spend is the money you pay directly to Google (or other ad platforms) for clicks or impressions. Your total PPC budget includes your ad spend plus any agency management fees or software costs. It's important to account for both to get a full picture of your investment and ensure you're not surprised by hidden costs.
Smart businesses don't choose one over the other. PPC offers immediate visibility and pipeline, while SEO builds long-term, compounding organic traffic and authority. Combining both strategies creates a powerful marketing engine. PPC fills your sales funnel now, and SEO ensures sustainable growth. Your budget allocation should reflect your immediate needs for leads and your long-term growth aspirations.
You should review and potentially adjust your PPC budget monthly, or at least quarterly. Market conditions, competitor activity, seasonality, and changes in your business goals all impact ad performance. Regularly analyzing your campaign data and adjusting your budget ensures you're always optimizing for the best possible return on ad spend.
Average CPC varies widely by industry, location, and keyword competitiveness. For local businesses, CPCs can range from $1 to $10 or more. Highly competitive industries like medical practices or legal services often see higher CPCs. Researching your specific industry and local market is key to setting a realistic expectation.
Understanding your Customer Lifetime Value (CLTV) helps you determine how much you can afford to spend to acquire a new customer. If a customer is worth $5,000 over their lifetime, you can justify a higher Cost Per Acquisition (CPA) than if they are only worth $500. Knowing your CLTV ensures your ad spend is profitable in the long run, not just for the first transaction.
Armitage monitors your marketing metrics across every channel, every day. Get a free growth audit to see where you stand.
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