How the PPC Budget Calculator works
Work backwards from a goal: how many orders you want, how many clicks that takes at your conversion rate, and what those clicks cost at your expected CPC. The result is the daily budget to set in campaign manager.
The implied ACoS tells you immediately if the plan is affordable; compare it with your break-even ACoS before committing.
Formula
- Units = Target units, or Target sales ÷ Price
- Clicks needed = Units ÷ Conversion rate
- Budget = Clicks × CPC
- Daily budget = Budget ÷ Days
- Implied ACoS = Budget ÷ (Units × Price) × 100
Example
300 units at 10% conversion = 3,000 clicks, $2,550 for the month, $85 per day, about 28% implied ACoS.
Target units from ads: 300Selling price: 29.99Conversion rate %: 10Expected CPC: 0.85CTR % (optional): 0.4Days in the period: 30
Frequently asked questions
Where do I get CPC and conversion before launch?
Use Amazon's suggested bid range for CPC and 8–10% conversion as a starting assumption; replace both with real data after the first two weeks.
Should the daily budget equal this number?
Set it a little higher. Amazon may spend up to 25% over the daily budget on some days and less on others.