Google Ads Budget Calculator
To set a Google Ads budget, work backwards from the leads you want: target leads ÷ conversion rate × average cost-per-click = monthly budget. Enter your three numbers below and you'll instantly see the budget you need, the clicks it buys, and your cost per lead.
Estimates only — real costs vary by industry, location and competition. Use this as a starting point, then refine with live account data.
How this calculator works
Most people set a Google Ads budget by picking a round number and hoping. The better way is to start from the result you want — a number of leads — and let the math tell you the spend required.
The formula has three moving parts:
- Target leads — how many calls and form fills you want each month.
- Average cost-per-click (CPC) — what you pay for each visit. Higher-competition trades (legal, medical, emergency services) sit at the top of the range.
- Conversion rate — the share of clicks that turn into a lead. This is set mostly by your landing page and how well your keywords match intent.
The math: clicks needed = target leads ÷ conversion rate. Budget = clicks needed × CPC. So 50 leads at an 8% conversion rate needs ~625 clicks; at $4 a click, that's a ~$2,500/month budget and a $50 cost per lead.
What's a realistic budget for a local business?
As a rough guide, most local businesses see consistent results in these ranges. For the reasoning behind these numbers, see the full guide on how much a local business should spend on Google Ads.
| Situation | Typical monthly budget |
|---|---|
| Testing the water (one tight campaign) | $1,000–$1,500 |
| Established local business, steady leads | $1,500–$3,000 |
| Competitive trade (legal, medical, home services) | $3,000–$10,000+ |
How to lower the budget you need
If the number above looks higher than you'd like, you have two levers — and the second is the one most businesses ignore:
- Lower your cost-per-click — tighter keywords, better Quality Score, and cutting wasted clicks all pull CPC down.
- Raise your conversion rate — this is the big one. Going from a 5% to a 10% conversion rate halves the budget needed for the same number of leads. A focused landing page is usually the fastest win.
That's exactly the kind of thing I look at first. If you want a second pair of eyes on your numbers, get in touch — no pitch, just an honest read.
Frequently asked questions
Work backwards from the leads you want. Divide your target leads by your conversion rate to get the clicks you need, then multiply those clicks by your average cost-per-click. In short: target leads ÷ conversion rate × average CPC = monthly budget.
For local-service landing pages, a 5–10% click-to-lead rate is a healthy range. Below ~3% usually signals a weak landing page or poorly matched keywords; well-built pages can clear 10%.
Most local businesses get traction at roughly $1,000–$3,000/month — enough data for the system to optimize. Competitive trades often start higher. The calculator ties the number to your lead goal rather than a generic figure.
Either your CPC is steep for your keywords, or your conversion rate is low. Improving the landing page (raising conversion rate) is the fastest way to bring the required budget down.
Not sure your numbers add up?
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