Free tool · E-commerce

How much should you spend on e-commerce ads?

Enter your budget, order value and category. See expected visits, purchases, revenue and return on ad spend, then unlock a full Google and Meta plan for your store.

“How to get more online sales?”Ad spend → Visits → Purchases → Revenue
How it works

Four steps to your plan.

  1. Pick your goal

    More leads, better quality, a launch or a lower cost.

  2. Answer 7 questions

    Budget, market, what you sell and how you follow up.

  3. See your estimate

    Leads, customers, revenue and return, instantly.

  4. Unlock your plan

    Budget split, targeting, ad ideas and a 90-day roadmap.

Guide

The complete guide: E-commerce Ad Budget Calculator

How much should you spend on e-commerce ads?

The right ad budget is the one that brings enough sales for the platforms to learn, at a return on ad spend (ROAS) you can afford. Start from your margins, not from what competitors spend.

Visits = ad budget ÷ cost per click

Purchases = visits × conversion rate

Revenue = purchases × average order value

ROAS = revenue ÷ ad budget

Worked example for a beauty and personal care store in the United States with a $60 average order value, budget split 40% Google and 60% Meta:

MetricBenchmark$3,000 a month$7,500 a month
Visits$0.90 Google, $0.70 Meta per click≈ 3,900≈ 9,760
PurchasesAbout 2% of visits≈ 79≈ 199
Revenue× $60 order value≈ $4,770≈ $11,900
ROASRevenue ÷ spend≈ 1.6×≈ 1.6×

A 1.6× ROAS is not profitable for most stores, which is why order value, conversion rate and retargeting matter as much as budget. Raising the average order to $80 with bundles would lift the same campaigns to about 2.1×.

Run your own numbers →

Break-even ROAS: the number every store needs

Break-even ROAS is the return at which ads pay for themselves. Calculate it as 1 ÷ gross margin (after product cost, shipping and fees).

Gross marginBreak-even ROAS
25%4.0×
35%2.9×
50%2.0×
60%1.7×
70%1.4×

Campaigns above break-even make money on the first order. Many brands accept a lower first-order ROAS when repeat purchases are strong, but they should know that choice is deliberate.

Google Shopping vs Meta ads for online stores

Google Shopping and Performance Max show your products to people already searching for them. They usually convert better and suit products people search for by name or category.

Meta Advantage+ shopping creates demand for products people do not search for yet, through video and creative. It suits new brands, visual products and launches.

Most stores need both, plus retargeting for cart abandoners and product viewers, which usually lifts sales by 10–20% for very little extra spend.

How to improve ROAS

  • Install the Meta pixel with Conversions API and Google enhanced conversions, so platforms learn from real purchases.
  • Test three new creatives every two weeks; customer review videos usually win.
  • Raise average order value with bundles and a free-delivery threshold.
  • Make product pages load in under three seconds on mobile, with reviews next to the buy button.
  • Recover abandoned carts by email or WhatsApp within an hour.

Benchmarks are planning averages for a US-level market, used by the calculator above. Your own results will vary with your offer, creatives, landing page and follow-up.

FAQ

Common questions.

What is a good ROAS for e-commerce?

It depends on your margin. A store with 50% margins breaks even at 2×; a store with 25% margins needs 4×. Aim for comfortably above your break-even ROAS.

How much should a small online store spend on ads?

Around $1,000 a month in mature markets gives Google and Meta enough data to optimise. Scale by about 20% a week once ROAS is above break-even.

How do I calculate ad budget for e-commerce?

Divide your target revenue by your target ROAS. For $15,000 in revenue at a 3× ROAS, plan about $5,000 in ad spend.

What is a typical e-commerce conversion rate?

Most stores convert 1–3% of paid traffic. Beauty and food often convert higher; electronics and furniture lower.

Should I use Google Shopping or Facebook ads?

Both. Google Shopping captures existing demand; Meta creates new demand. Start with whichever fits how customers find products like yours.

Why is my ROAS low?

The usual causes are weak tracking, low order value, slow product pages, tired creatives and no retargeting.