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Ad Budget Calculator: How Much Should You Spend on Google Ads?

Work backward from the customers you want to the leads, clicks and monthly budget you need, using industry cost-per-lead benchmarks. You get a realistic range, not a guess.

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  • Cited benchmark
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  • Your number

Your industry

Pick the closest match. It fills in the benchmarks below, and you can type over any of them.

Your goal

EXAMPLE · use your own goal
EXAMPLE · use your own close rate

Out of every 10 leads, how many usually hire you?

Search-ad benchmarks

LocaliQ 2026 · All industries

Set by your industry above. Type your own if you know it.

LocaliQ 2026 · All industries
LocaliQ 2026 · All industries
Monthly ad budget rangeMonthly ad budget (both methods agree)

Monthly ad budget range: —

To win — customers a month, plan on about — leads from about — ad clicks.

Your monthly funnel

By cost per lead
—
By cost per click
—

Two methods, one honest range: leads needed × cost per lead, and clicks needed × cost per click. Benchmarks are averages for search ads; your market may differ.

Your full breakdown

Your Budget Range Is Ready. Want to Spend It Smarter?

Your free Butter Report adds your daily budget, cost per customer and return on ad spend at your customer value, plus the 10 paid-search leaks we check first in every account.

  • Daily budget
  • Cost per customer and ROAS
  • 10-point paid search leak checklist
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Spend on leads, not clicks

Google Ads, Meta and Local Services Ads managed for cost per lead, with conversion tracking and lead follow-up included.

How we calculated this

The formula, in plain words

Leads needed = customers wanted ÷ close rate. Budget by cost per lead = leads needed × average cost per lead. Budget by cost per click = (leads needed ÷ conversion rate) × average cost per click. Your range runs from the lower to the higher of the two.

Example: a law firm that wants 4 new cases a month

New clients wanted
4 a month
Lead-to-client rate
10%
Legal cost per lead
$131.63
Legal conversion rate
5.55%
Legal cost per click
$9.87
  1. Leads needed = 4 ÷ 10% = 40
  2. Budget by cost per lead = 40 × $131.63 = about $5,265
  3. Clicks needed = 40 ÷ 5.55% = about 720.7
  4. Budget by cost per click = 720.7 × $9.87 = about $7,114

A range of about $5,265 to $7,114 a month, or about $173 a day at the low end.

Customers wanted and close rate are example inputs. Legal benchmarks are from WordStream by LocaliQ 2026.

Estimates for planning only; based on cited industry benchmarks. Benchmarks are LocaliQ / WordStream averages for search ads. Your market may differ. This is an estimate, not a guarantee of results.

Quick answer

How much should a small business spend on Google Ads?

Start from your goal. Leads needed = customers you want ÷ close rate. Budget ≈ leads needed × your industry's average cost per lead. Cross-check with clicks needed (leads ÷ conversion rate) × cost per click. The two methods give you a low-to-high monthly range to plan with.

By Buttered Business Team Updated

How it works

Four Quick Steps to Your Number

  1. Pick your industry.

  2. Enter how many new customers you want each month and your close rate.

  3. Optionally enter your own cost per lead or cost per click.

  4. See your monthly budget range instantly.

The method

How This Tool Does the Math

How the Ad Budget Calculator works

Most ad budgets start with a number someone picked. This calculator starts with your goal and works backward to the budget that goal needs.

  1. Leads needed = new customers you want each month ÷ your close rate.
  2. Budget by cost per lead = leads needed × your industry's average cost per lead.
  3. Clicks needed = leads needed ÷ your industry's average conversion rate.
  4. Budget by cost per click = clicks needed × your industry's average cost per click.

The lower and higher of the two budgets become your range. They differ because the benchmark publishes separate averages, and an average cost per lead isn't the same as an average cost per click divided by an average conversion rate. Showing both gives you an honest range instead of false precision. The daily budget is the low end divided by 30.4 days.

The benchmarks

We use WordStream by LocaliQ's 2026 search advertising benchmarks for Google and Microsoft Ads, and LocaliQ's 2025 home services benchmarks, drawn from 3,211 U.S. campaigns, for trades like HVAC, plumbing, roofing and cleaning. Legal search ads, for example, run about $130 per lead. Home builders don't have their own category, so we use real estate as the closest proxy and offer general contractors as an alternative.

Lowering your cost per lead

Budget is only half the equation. A fast landing page, a clear offer and instant follow-up raise your conversion and close rates, and that lowers your cost per customer at any budget. Your full report includes a 10-point checklist of the leaks we look for first in paid search accounts, plus your daily budget, cost per customer and return on ad spend.

What this can't tell you

Benchmarks are averages across many advertisers. Your market, competition, season and offer will move your real numbers, sometimes a lot. Use the range to plan, start at a level you're comfortable testing, and track your actual cost per lead from week one. Real data beats any benchmark within a few weeks.

Tool FAQ

Questions About This Tool

How the numbers work and what to do with them.

Still chewing on something?

Ask a real human. We answer in plain English and never send you down a jargon rabbit hole.

Why does the calculator show a range instead of one number?

Because it calculates your budget two ways, by cost per lead and by cost per click, and the published averages don't line up perfectly. The range is more honest than false precision.

Where do the benchmarks come from?

From WordStream by LocaliQ's 2026 search advertising benchmarks for Google and Microsoft Ads, and LocaliQ's 2025 home services benchmarks, drawn from 3,211 U.S. campaigns, for trades like HVAC, plumbing and roofing.

My industry isn't listed. What should I pick?

Pick the closest match, then enter your own cost per lead or cost per click if you have them. Your real numbers always beat a benchmark.

What do you use for home builders?

There's no home builder category in the benchmarks, so we default to real estate search ads ($102.51 per lead) as the closest proxy, with general contractors ($165.67 per lead) as an alternative. Both are labeled as proxies.

Is this budget guaranteed to hit my goal?

No. Benchmarks are averages across many advertisers, and your market, competition and offer will move your real numbers. Use the range to plan a test, then track your actual cost per lead.

How can I get more from the same budget?

Raise your conversion rate and close rate. A fast landing page, a clear offer and instant follow-up lower your cost per customer at any budget.

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