Google Ads Budget for Small Business

How much should you spend? What's realistic? When to scale.

Realistic monthly budgets by objective

Phase 1: Test (30 days)

  • Budget: $500-2,000
  • Goal: Validate that ads generate leads
  • Expected leads: 5-20

Phase 2: Scale (90 days)

  • Budget: $2,000-5,000/month
  • Goal: Generate consistent leads
  • Expected leads: 20-50/month

Phase 3: Optimize (6+ months)

  • Budget: $5,000-15,000/month
  • Goal: Dominate your market
  • Expected leads: 50-150/month

Budget by industry

Industry Recommended Monthly Budget
Local services (plumbing, HVAC) $2,000-5,000
SaaS / Software $5,000-15,000
E-commerce $3,000-10,000
B2B Services $5,000-20,000

ROI expectations

  • Month 1: Break-even or negative (learning phase)
  • Month 2-3: 1-2x ROI typical
  • Month 4+: 2-5x ROI with optimization

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