Skip to content
Free tool · No signup

How much budget does that target actually need?

Most revenue targets are set without checking whether the required CPA is even affordable. This works backwards and tells you before you commit.

Your numbers

$
$
%

After COGS, shipping, fees, discounts, and returns.

%
$
%

Revenue you'd get without paid media. Paid only has to cover the rest.

Annual media budget required

$295,455

About $24,621 per month to hit the target.

Orders needed

3,571

2,321 from paid

Clicks needed

105,519

Implied CPA

$127

Your CAC ceiling

$59

Contribution per order.

Implied ROAS required

1.10x

This target isn't reachable at these inputs. An implied CPA of $127 exceeds your $59 ceiling, so every paid order loses about $68.47. Raising conversion rate or order value moves this far more than a bigger budget will.

Conversion rate is the most sensitive input here. Try raising it a few tenths of a point — the required budget usually falls faster than people expect, which is the whole argument for fixing the funnel before scaling spend.

Calculated in your browser — nothing is sent anywhere, and nothing is stored.

How it works

The maths, so it isn't a black box.

01

It starts from orders, not spend

Revenue target divided by average order value gives the orders you need. Everything else derives from that, which is the correct direction — spend is an output, not an input.

02

It subtracts what organic already covers

Paid only has to produce the share of revenue that organic, email, and direct don't. Skipping this step is the most common way budget requirements get overstated.

03

It checks CPA against your ceiling

The required CPA is compared to contribution per order. If it exceeds it, the plan loses money at every level of spend and no budget increase fixes that.

04

It exposes conversion rate as the real lever

Nudge the conversion rate input a few tenths of a point and watch the required budget fall. That sensitivity is the argument for fixing the funnel first.

Questions about this calculation

Then the target isn't reachable through spend alone, and that's genuinely useful to know before the year starts. The realistic responses are raising conversion rate, raising order value, improving margin, or revising the target — not hoping for cheaper clicks, which the auction sets rather than you.

Want us to run it properly

We'll build this model on your real data.

A free 30-minute teardown where we build your contribution margin model from actual figures and show you where the funnel leaks. Yours to keep either way.