Ad budget planner
Can I hit my revenue target profitably? The monthly spend you need to hit a revenue target, and what is left after ads.
Free answer on screenAbout a minuteYour numbers stay in your browser
Can I hit my revenue target profitably?
YES
Full breakdown
Three fixes for your numbers
- Split spend by campaign above break-even ROAS
- Hold 20% for creative testing
- Re-plan monthly against actuals
See the full breakdownThe numbers behind your answer and three fixes, also sent to your WhatsApp.
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Book a callHow it is calculated
Worked through with the typical numbers already in the calculator.
What you get
- Monthly and daily ad budget for your revenue target
- Revenue you need from ads
- What is left after ads, at your ROAS
| Step | Formula | Result |
|---|---|---|
| Revenue from ads | ₹5,000,000 × 70% | ₹3,500,000 |
| Ad spend a month | ₹3,500,000 ÷ ROAS 3 | ₹1,166,667 |
| Margin on the target | ₹5,000,000 × 45% | ₹2,250,000 |
| Left after ads | Margin − ad spend | ₹1,083,333 |
What a good number looks like
Below this ROAS, ads cost more than the margin they bring. It is the floor, not the goal.
| ROAS you need, by margin and share of revenue from ads | |
|---|---|
| 40% margin, 50% from ads | 1.25 |
| 40% margin, 70% from ads | 1.75 |
| 40% margin, 90% from ads | 2.25 |
| 30% margin, 70% from ads | 2.33 |
| 50% margin, 70% from ads | 1.40 |
This page was updated in October 2026 and reviewed by our senior marketing team.
Mistakes that make this number wrong
We see these in most accounts we audit.
Planning from a target, not a margin
A revenue target without a break-even ROAS can plan you into a loss.
Assuming ROAS holds as spend rises
ROAS usually falls as budgets grow, because each extra rupee reaches less likely buyers.
Forgetting returns
Plan on revenue after returns and RTO, not before.
No budget for testing
Without money set aside for new creative, results fall and CAC rises.
How to improve it
These are the four levers we pull first, and the service behind each one.
Lever 1
Grow revenue that ads do not buy
Retention, organic search and marketplace search lower the share of revenue from ads.
Fixed by retention marketingLever 2
Plan budgets by channel
Meta, Google, marketplaces and quick commerce each get their own target ROAS.
Fixed by E-commerce and D2C consultingLever 3
Raise ROAS on what you already spend
We test creative weekly and move budget to the winners.
Fixed by performance marketingLever 4
Check the target is real
We check stock, margin and channel capacity before the budget is set.
Fixed by E-commerce and D2C consultingDefinitions and questions
Why does the share of revenue from ads matter?
The more of your revenue ads have to buy, the higher the ROAS you need to stay profitable. Repeat and organic orders need no new ad spend, so they lower that share.
Which ROAS should I use?
Use your true ROAS after returns, not the number the platform shows.
What is left after ads?
It is your margin before ads minus your ad spend. This is the money that pays salaries, rent and everything else.
Should the budget be the same every month?
No. Festive months and sale events need more. We plan budgets month by month against stock and the calendar.
What numbers do I need?
You need your monthly revenue target, the share of revenue you expect from ads, your expected ROAS and your margin before ads.
What if the plan shows a loss?
Either the ROAS you need is too high for your margin, or too much revenue depends on ads. Raise margin or grow repeat and organic sales first.
How do I split the budget across channels?
Give each channel its own target ROAS, set from your margin, and move budget towards the channels that beat it.
Can I plan festive budgets with this?
Yes. Run it for each month, with higher targets for festive months and sale events.
Is there a minimum budget to start?
No. Start with what your margin can support and grow spend on what proves profitable.
Should I use platform ROAS or true ROAS?
Use true ROAS after returns. Platform ROAS counts orders that later come back, so it makes the budget look safer than it is.
Does the planner include marketplace ads?
Yes. Include marketplace and quick commerce revenue from ads in the share of revenue from ads, with their own ROAS.
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Five questions, no email needed. You get an honest answer on screen.
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Your answers match the brands we help most.
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You keep the findings either way.
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