What ad budget do I need?

The budget follows from the goal and target CAC, not a fixed share of revenue.

Budget = required customers × target CAC. For a revenue goal and average order value, first calculate sales. On a first-purchase horizon, new customers equal first sales, so funnel conversion is not needed at this step.

What to consider

Enter your target CAC; do not substitute a market average.
Convert revenue into sales using average order value, not margin.
For a first-purchase horizon, new customers equal first sales.
Customer count and budget are separate decisions.

What stays the same across scenarios

Average order value and conversion rates come from your funnel.
Set a revenue, sales, or customer goal.

What changes or is assumed

Conversion rates and CAC stay constant over the planning horizon.
The budget excludes test spend and seasonal changes.

Calculation steps

Set a revenue, sales, or customer goal.
Enter target CAC.
Review required customers and the ad budget.

Build the calculation in a calculator

The example also carries: Target type: revenue (revenue / sales / customers).

Illustrative example: Open with an example: revenue ₽500,000, order value ₽5,000, target CAC ₽2,000

Editorial team: MARKMA Editorial Team. Reviewed: 2026-09-25.