How to Decide Your Google Ads Budget — A Beginner's Guide

First, Define Your Goal

Before deciding your budget, get clear on this — how many leads do you need per month? If you need 30 leads, only then can you calculate the right budget.

Understand CPC (Cost Per Click)

CPC is the amount you pay for every click — it varies by industry and keyword competition. Low-competition keywords might have a CPC of ₹10–20, while high-competition ones can go ₹50–100+.

A Simple Budget Formula

• Step 1: Decide your target leads per month (say, 30 leads).
• Step 2: Assume an average conversion rate — the ratio of website visits that turn into leads (typically 2–5%).
• Step 3: Calculate total clicks needed (30 leads ÷ 3% = 1,000 clicks).
• Step 4: Multiply clicks by CPC (1,000 clicks × ₹30 CPC = ₹30,000/month budget).

Start Small and Test First

If you're new to this, start with a daily budget of ₹300–500 and collect data for 2 weeks. This will show you the actual CPC and conversion rate in your industry — then you can scale your budget accordingly.

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