Google shopping budget estimator

Clicks needed is the order target divided by the conversion rate. If you want 100 orders and 2 percent of Shopping clicks turn into orders, you need 5,000 clicks. Budget is those clicks multiplied by cost per click: 5,000 clicks at 80 cents is 4,000 dollars. Revenue is the 100 orders multiplied by a 75 dollar average, which is 7,500 dollars. Implied ROAS is revenue over spend, 7,500 divided by 4,000, which is about 1.9x. If that figure sits below your break-even ROAS, the plan loses money before you have bought a single click, and the inputs need to change before the campaign does.

If you already run Shopping, take both from the campaign report for the last ninety days, split by device if mobile and desktop differ a lot. If you have never run it, use your site-wide conversion rate for paid traffic as a starting point and the cost per click that the keyword planner or your first week of data suggests for your category. Expect the real figures to differ, and rerun the estimate after two weeks with what actually happened. The estimate is most wrong for new accounts and for stores with very high or very low prices, where click costs and conversion rates behave differently from the average.

If the implied ROAS is too low, there are three ways out and only one of them is cheaper clicks. Raise conversion rate on Shopping traffic by sending clicks to product pages that match the search, showing stock and delivery clearly, and keeping the checkout short. Raise average order value with bundles and a shipping threshold so each order carries more revenue for the same click cost. Or accept a low first-order ROAS because your repeat purchase data shows the customer comes back. Change one input at a time in the tool and you can see which lever pays back most for your store.