How to Use This Calculator
Plan your Amazon PPC budget in under 60 seconds—and know exactly how much to spend to hit your revenue goals profitably.
Enter Your Monthly Revenue Goal
Input how much ad-attributed revenue you want to generate monthly. Be realistic—start with your current baseline and scale gradually.
Set Your Target ACOS
Enter your target ACOS percentage. Use our Amazon ACOS Calculator to find your break-even ACOS first.
Add Product Economics
Enter your average order value and conversion rate to calculate expected performance metrics like clicks and orders.
Review Your Budget Plan
See your calculated monthly and daily budget, expected clicks, conversions, and cost efficiency analysis.
Pro Tip: Use our Amazon FBA Calculator first to understand your true margins before setting your target ACOS.
Why PPC Budget Planning Matters
Your Amazon PPC budget is the fuel that powers your ad campaigns. Spend too little and you'll miss profitable sales. Spend too much without a plan and you'll burn through cash faster than you can track ROI.
The key insight most sellers miss: your budget should be driven by your revenue goals and ACOS targets—not arbitrary numbers like "$50/day" or "10% of revenue." When you reverse-engineer your budget from goals, you create a sustainable, scalable advertising strategy.
The Budget Trap
70% of Amazon sellers set budgets based on what they "can afford" rather than what their goals require. This leads to underfunding profitable campaigns or overspending without clear targets—both leave money on the table.
This calculator solves that problem. Enter your revenue goal and target ACOS, and you'll instantly see exactly how much you need to spend daily and monthly to achieve it profitably.
Understanding PPC Budget Calculation
Amazon PPC budget planning is fundamentally about the relationship between revenue goals, ACOS targets, and ad spend. Understanding this relationship is crucial for profitable advertising.
The Core Relationship
Your required ad budget is simply your target revenue multiplied by your target ACOS. If you want $10,000 in monthly ad revenue at 25% ACOS, you need a $2,500 monthly budget. It's that straightforward.
Budget Quick Reference
Why Target ACOS Matters
Your target ACOS directly determines how much budget you need for any revenue goal. A lower target ACOS means you need more efficient campaigns—which typically require more optimization work and may limit scale. A higher target ACOS lets you be more aggressive with spending.
The key is knowing your break-even ACOS (your profit margin percentage). Any target ACOS below your break-even is profitable. Use our Amazon ACOS Calculator to find your exact break-even point.
PPC Budget Formulas
Here are the core formulas for calculating your Amazon PPC budget and expected performance metrics.
Monthly Budget
Your required monthly ad spend to hit revenue goals at your target ACOS. If you want $10,000 revenue at 25% ACOS, budget = $10,000 × 0.25 = $2,500.
Monthly Budget = Target Revenue × (Target ACOS / 100)Daily Budget
Your required daily ad spend. Set this as your campaign daily budget in Amazon Ads. Remember Amazon may overspend by up to 25% on high-traffic days.
Daily Budget = Monthly Budget / 30Expected Orders
How many orders you need to hit your revenue goal. If targeting $10,000 revenue with $40 AOV, you need 250 orders.
Expected Orders = Target Revenue / Average Order ValueExpected Clicks
How many clicks your budget will generate based on your average cost-per-click. Higher CPC categories need bigger budgets for the same clicks.
Expected Clicks = Monthly Budget / Average CPCRequired Conversion Rate
The conversion rate needed to hit your targets. Compare this to your actual CVR—if required CVR is higher than your actual CVR, your goals may be unrealistic.
Required CVR = Expected Orders / Expected Clicks × 100Real-World Budget Examples
Let's walk through three budget scenarios to see how different revenue goals and ACOS targets translate to actual budgets.
Example 1: Small Seller (Conservative)
Starting Amazon Seller
Revenue Goal: $5,000/mo, Target ACOS: 30%, AOV: $25, CVR: 10%, CPC: $0.80
Example 2: Scaling Seller (Growth Mode)
Established Brand Scaling
Revenue Goal: $25,000/mo, Target ACOS: 25%, AOV: $45, CVR: 12%, CPC: $1.20
Example 3: Aggressive Launch Strategy
New Product Launch (Ranking Focus)
Revenue Goal: $15,000/mo, Target ACOS: 45%, AOV: $35, CVR: 8%, CPC: $1.50
Amazon PPC Budget Benchmarks
Budget requirements vary significantly by product category, competition level, and business goals. Here are typical ranges:
| Business Stage | Budget % of Revenue | Typical Daily Budget |
|---|---|---|
| New Product Launch | 30-50% | $50-200 (aggressive ranking) |
| Growing Brand | 20-30% | $100-500 (scale + profit) |
| Established Seller | 10-20% | $200-1,000 (profit focus) |
| Market Leader | 8-15% | $500-5,000+ (defense + efficiency) |
| Category | Typical CPC | Budget Needed for 1,000 Clicks |
|---|---|---|
| Home & Kitchen | $0.50-1.00 | $500-1,000 |
| Beauty & Personal Care | $0.80-1.50 | $800-1,500 |
| Electronics | $1.00-2.50 | $1,000-2,500 |
| Supplements | $1.50-4.00 | $1,500-4,000 |
Remember: These are benchmarks, not rules. Your optimal budget depends on your specific profit margins, competition, and growth goals. Use our Break-Even ROAS Calculator to understand your minimum viable ad efficiency.
Common PPC Budget Mistakes
Avoid these costly budget errors that hurt Amazon advertising performance:
Setting Budget Without Revenue Goals
Saying "I'll spend $50/day" without knowing what revenue you're targeting is flying blind. Always start with your revenue goal and target ACOS, then calculate the budget needed.
Underfunding Profitable Campaigns
If a campaign has 15% ACOS and your break-even is 30%, it's very profitable—but many sellers limit its budget. Underfunding winners leaves money on the table. Use our Reverse ROAS Calculator to see potential revenue at higher budgets.
Not Accounting for Campaign Budget Limits
Amazon can spend up to 25% more than your daily budget on high-traffic days. If you budget exactly $100/day, expect some days to hit $125. Plan for this variance.
Spreading Budget Too Thin
$10/day across 20 campaigns means $0.50 per campaign—not enough data to optimize. Concentrate budget on your best performers first, then expand as you scale.
Ignoring Seasonality
Budgets that work in February may exhaust by noon during Prime Day. Plan for 2-3x budget during peak seasons (Q4, Prime Day, Back to School) to capture demand.
Budget Optimization Strategies
Maximize the impact of every dollar in your Amazon PPC budget with these proven strategies:
Allocate by Campaign Performance
Give 60-70% of budget to proven performers (ACOS below target). Give 20-30% to testing new keywords. Keep only 10% for experimental campaigns. Reallocate monthly based on data.
Use Portfolio Budgets Strategically
Group related campaigns into portfolios with shared budgets. This lets Amazon auto-allocate spend to best performers while maintaining overall spend control.
Monitor Budget Depletion Time
If campaigns exhaust budget by 2pm, you're missing evening shoppers. Either increase budget or lower bids to spread spend across the day. Check "Time of Day" reports.
Scale Incrementally
When increasing budgets, go up 15-20% at a time and monitor for a week. Dramatic budget jumps can destabilize campaign performance as Amazon re-learns optimal bidding.
Reserve Emergency Budget
Keep 10-15% of your monthly budget as reserve for opportunities: competitor stockouts, viral moments, or unexpected ranking opportunities. Quick budget increases can capture windfall sales.
Daily vs Monthly Budgeting: Which to Use?
Amazon offers both daily campaign budgets and monthly portfolio budgets. Understanding when to use each optimizes your spend efficiency.
Daily Budgets Work Best For:
- •Individual campaign control
- •Testing new campaigns with limited risk
- •Strict spend limits during optimization
- •Products with predictable daily sales
- •Small portfolios (under 10 campaigns)
Monthly Portfolios Work Best For:
- •Overall spend control across campaigns
- •Auto-allocation to best performers
- •Variable daily demand products
- •Large campaign structures (10+ campaigns)
- •Brands with established campaign history
Hybrid Approach (Recommended)
Use both: Set monthly portfolio budgets for overall spend control, plus daily campaign budgets to prevent any single campaign from consuming the entire portfolio budget.
Example: $3,000 monthly portfolio budget with $150 daily cap per campaign. This balances flexibility with protection against runaway spend.
Bottom Line: Start with daily budgets while learning campaign performance. Graduate to portfolio budgets once you have 30+ days of data and want Amazon's algorithm to optimize allocation. Use our ACOS Calculator to track efficiency regardless of budget structure.
Frequently Asked Questions
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