Do Paid Ads Make Sense for Your Business?
Use this calculator to estimate how many leads and customers you may need to make paid advertising profitable. Adjust the numbers to compare different advertising scenarios. All results are estimates, as advertising costs and performance vary between businesses and industries.
Lead costs vary depending on your industry, service, location, competition, offer and targeting. For a conservative starting estimate, try between $20 and $60 per lead. Some industries may be higher or lower.
It is generally safer to begin with a higher estimated cost per lead rather than assuming the best-case result. Advertising efficiency may improve over time as campaign data is collected and the targeting, advertisements and offer are optimised. However, improvement is not guaranteed.
Play around with the estimated cost per lead, conversion rate and profit margin to compare conservative and optimistic scenarios.
Based on the information entered, paid advertising may be profitable for your business. Actual results will depend on your offer, targeting, sales process, lead quality and ability to convert enquiries into customers.
This is the estimated gross profit generated by the campaign after subtracting the advertising budget and management fee. It does not include other business overheads, wages, taxes or unexpected costs.
A higher ROAS or marketing efficiency ratio generally indicates that more revenue is being generated for every dollar spent. These figures should always be considered alongside your actual profit margin.
Want Us to Review Your Numbers?
Every business is different. BKBS One can review your numbers, calculate your realistic break-even point and recommend an advertising strategy based on your business.
This calculator provides general estimates only. Advertising performance varies between industries, locations, offers, competition and businesses. Results are not guaranteed.
