Will Google Ads actually pay?
Most ad calculators work in revenue, which makes everything look profitable. This one works in gross profit, because what matters is the most you can afford to pay for a sale, and whether your clicks cost less than that.
Ads pay off when a sale costs you less to win than it leaves you.
What you'd pay Google itself, not counting management.
R5 to R25 covers most South African searches. Competitive trades run higher.
Enquiries divided by clicks. 2 to 6% is normal on a decent landing page.
Your own close rate. You will know this better than any benchmark.
What one customer pays you, on average.
What's left after the cost of delivering it. This is the number that matters most.
Leave at zero if you run the ads yourself. Ours start at R3 500 a month, separate from ad spend.
The working: R8 000 buys 667 clicks, 26.7 leads and 6.7 sales. Each sale leaves R2 925 after delivery, against R1 200 to win it.
Estimates on your own inputs, not a forecast. It assumes every sale is a one-off, so if customers come back or refer others the real ceiling is higher. It also ignores VAT, which you should take off the sale value if you are registered.
Calculator questions.
Why does it ask for margin instead of just revenue?
Because a 4x return on ad spend sounds excellent until you learn the margin is 20%, at which point it is barely breaking even. What matters is whether a sale costs you less than it leaves you.
It says I'd lose money. Does that mean ads are pointless?
Not necessarily. It means these numbers do not work. A better landing page, cheaper clicks or a higher close rate can change the answer, and it is better to know before you spend.
Should I include your management fee?
Yes, to see the real picture. Ours start at R3 500 a month, separate from ad spend.
What about customers who come back?
This tool deliberately ignores that, so treat it as the pessimistic case. If a customer comes back twice a year, you can afford to pay far more to win them.