Model channels, margins, and conversions in one place. Reveal efficient budget splits with clear confidence. Turn campaign data into smarter spending decisions right now.
| Channel | Current Budget | CPC | CTR (%) | CVR (%) | Quality | Max Budget | Scalability (%) |
|---|---|---|---|---|---|---|---|
| Search Ads | $12,000.00 | $2.40 | 4.80 | 6.20 | 1.10 | $18,000.00 | 85 |
| Social Ads | $9,000.00 | $1.80 | 2.90 | 3.90 | 0.95 | $15,000.00 | 75 |
| Email / Influencer | $6,000.00 | $1.20 | 5.20 | 7.80 | 1.15 | $12,000.00 | 90 |
1. Clicks = Budget ÷ CPC
2. Impressions = Clicks ÷ CTR
3. Effective Conversion Rate = Conversion Rate × Quality Multiplier
4. Conversions = Clicks × Effective Conversion Rate
5. Revenue = Conversions × Average Order Value
6. Gross Profit = Revenue × Gross Margin
7. Net Profit = Gross Profit − Ad Spend − Fixed Cost Share
8. Expected ROAS = Revenue ÷ Budget
9. CPA = Budget ÷ Conversions
10. Optimization Score = max(0, Profit Per Dollar) × Scalability × Target Fit. Budgets are then distributed by score and limited by each channel’s maximum scalable budget.
It optimizes budget allocation across three marketing channels using expected profit, scalability, and target fit. The goal is to shift spend toward channels that are more likely to improve revenue, ROAS, and net profit while respecting budget caps.
Gross margin converts revenue into profit contribution. Two channels may produce similar sales, but the real business value depends on how much of that sales revenue remains after product or service costs.
The quality multiplier adjusts the conversion rate. Use values above 1.00 for stronger traffic or funnel quality, and values below 1.00 when lead quality, intent, or landing-page performance is weaker.
Scalability estimates how safely a channel can absorb more spend. A higher score means the channel can usually scale with less performance decay. A lower score suggests limited inventory, audience saturation, or weaker expansion potential.
That happens when total available budget exceeds the sum of channel maximum budgets. The calculator prevents overspending beyond those caps, so leftover budget is shown separately instead of being forced into inefficient allocations.
No. ROAS helps compare sales efficiency, but profit matters more. A channel can show attractive ROAS and still underperform once margin, fixed costs, and conversion quality are considered.
Yes. Replace average order value with estimated revenue per lead or customer. Keep the gross margin field aligned with your business economics so the calculator reflects actual profit contribution.
The recommendation quality depends on the realism of your assumptions. It is best used for planning and scenario testing, then refined with actual campaign data, experiments, and periodic budget reviews.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.