How Much Should You Really Spend on Meta Ads When Starting Out

 If you've ever stared at Meta Ads Manager wondering, "How much should I actually spend to get results?" — you're not alone.

It’s the #1 question I get from online business owners ready to scale but terrified of wasting money. And guess what? There is a way to figure it out—without gambling your rent money.

THE REAL TRUTH? YOU BUDGET DEPENDS ON YOU!

Let’s address the elephant in the room: There is no one-size-fits-all dollar amount. Your business, offer, pricing, audience, and goals are unique—so your starting budget should be too.

But here's the good news: we use a simple method to help you calculate a starting budget that works for your personal situation.

Before we dive into the formula, let’s get your mindset right.

MINDSET MATTERS MORE THAN THIS NUMBER

You should only spend what you can afford to lose without losing sleep. This should be an amount you care enough about to actually track your campaign—but not so much that you're panicking every time the results lag.

Your first Meta Ads budget should:

• Be an amount you can afford to test.

• Be enough that you'll actually care about optimising it.

• NOT be your last $100.

Ask yourself: What’s the upside of figuring this out? Because in 30 days, you could be looking at a profitable system that delivers leads on autopilot.

THE MOST COMMON MISTAKE: STARTING TOO SMALL

Can you start with $5/day? Technically, yes.

Will that move the needle fast? Probably not.

If your average cost per sale is $50, a $5/day test might take weeks to give you meaningful data.

And it'll take 10-days to get you a sale. Imagine the potential if you increased the budget.

That’s why we recommend building your budget based on this simple 5-step formula.

OUR GO-TO FORMULA FOR CALCULATING YOUR META ADS BUDGET

Here’s how we reverse-engineer your ideal starting budget:

 1. Determine Your Average Customer Value

• For course creators: This is usually your average sale price.

• For ecommerce businesses: Use your Average Order Value (AOV).

• For service providers or coaches: Use the value of a single client engagement or retainer.

   

2. Set Your Acceptable Lead or Sale Acquisition Cost (CAC)

• Most course creators and service providers allow 20–30% of their offer price for acquisition.

• Ecommerce brands calculate this by subtracting profit margin and Cost Of Goods Sold (COGS) from AOV.

   

3. Know Your Lead-to-Sale Conversion Rate (for service-based businesses and course creators)

• If 1 in 10 leads buy your offer, that’s a 10% conversion rate.

4. Calculate Your Acceptable Cost Per Lead (CPL) (for service-based businesses and course creators)

• CPL = CAC ÷ Conversion Rate

• Example: If CAC is $100 and conversion rate is 10%, then CPL = $100 ÷ 0.10 = $10

5. Set Your Monthly Campaign Goal

• Multiply your desired number of new clients/sales by your acceptable CAC.

• Example: 10 clients x $100 CAC = $1,000 starting budget

QUICK BUDGET EXAMPLES

Example 1: Course Creator 

• Course Price: $397

• CAC Target: $119 (30%)

• Lead Conversion: 10%

• CPL = $119 ÷ 0.10 = $11.90

• Goal: 10 sales – ($119 x 10) = $1,190 Starting Budget

Example 2: Service Provider or Coach

• Package Value: $1,500

• CAC Target: $450 (30%)

• Lead Conversion: 10%

• CPL = $450 ÷ 0.10 = $45

• Goal: 5 clients – (5 x $450) = $2,250 Starting Budget

Example 3: Ecommerce Product

• Average Order Value: $50

• Cost of Goods Sold: $10

• Desired Profit: $25

• Max CAC: $15 ($50 - $25 - $10)

• Goal: 30 sales – (30 x $15) = $450 Starting Budget

   

Example 3: Ecommerce Product

• Average Order Value: $50

• Cost of Goods Sold: $10

• Desired Profit: $25

• Max CAC: $15 ($50 - $25 - $10)

• Goal: 30 sales = $450 Starting Budget

CBO VS. ABO: WHERE SHOULD YOU SET YOUR BUDGET IN THE CAMPAIGN?

Majority of the time, you'll use the Advantage+ Campaign Budget Optimisation (CBO) when testing. It allows Meta to shift spend to your top-performing ad sets and creatives.

More flexibility = faster data = faster results.

NOT SURE YOU'RE READY TO INVEST?

Before you spend a cent, review your metrics. Your results will only move as fast as the budget you set — but you still need:

• A proven offer that converts organically

• Insight into your conversion numbers

Use our Meta Ads Readiness Checklist "How to figure out if you're ready for Meta Ads" to make sure your brand is actually ready for ads (before you spend a penny)

FINAL THOUGHT: SMALL TEST, BIG POTENTIAL

Start small if you must — but don’t stay there.

You’re building a data machine. Every dollar spent is a lesson. Every lead is a potential sale. And every test brings you closer to a traffic system that prints profit.

But first you must check you're ready 👉 Download our free guide here today.