MasterYour Ad Spend: How to Calculate an Advertising Budget for Facebook, Instagram, TikTok, and More.

Knowing what to spend and predicting an advertising budget can make your head spin. Whether you're an

e-commerce store owner trying ads for the first time, or an experienced media buyer projecting how much to spend, our Facebook Ads Calculator will help give you an idea of what your Facebook Ads Budget should be.

Facebook ads is priced using Cost Per Mille, so this calculator will also work for any other platform that charges on a Cost Per Mille basis. (CPM)

What is CPM and Why Should You Care?

Cost Per Mille (CPM) refers to the cost of 1,000 impressions on an ad platform. It's a key metric for budgeting because it helps you understand how much you're paying to get your ad seen by 1,000 people. About CPM from Meta/Facebook.

Use our handy advertising budget calculator to understand your,

• Estimated Advertising Spend

• Average Cost Per Click

• Clicks needed to reach revenue goal

• Cost Per Acquisition (CPA)

• Number of Sales Needed to reach Gross Revenue Goal

How to use the Calculator.

• If you have no existing data, our recommendation for CPM is between $15-$20. CPM can fluctuate seasonally, so we recommend inputting a higher number as a buffer.

  • Revenue: Your Revenue Goal (Gross)

  • Product Price: Your Product Price

  • Average CPM: Your Cost Per Mille (enter $15, or $20 here if no data available)

  • Click Through Rate (CTR): Enter 1% here if no data available. According to a March 2023 Statista report, the average click-through rate (CTR) for Facebook ads in e-commerce is 1.75%

  • Conversion Rate (CVR): Enter 1% here if no data available. Average Conversion Rate Data from Madgickx

  You do not need to enter the $ or % sign in the calculator fields.

  When you’re starting from scratch and have no historical data to pull from, you can use industry benchmarks to estimate your Facebook ads budget. Benchmarks provide a useful starting point, even though they can vary widely depending on factors like industry and seasonality.

  To give you a solid foundation, here are a few average benchmarks to consider:

  • CPM (Cost Per Mille): $15-$20

  • CTR (Click Through Rate): 1% (Statista reports an average of 1.75% for e-commerce as of March 2023)

  • CVR (Conversion Rate): 1% (Madgickx data)

You do not need to enter the $ or % sign in the calculator fields.