Free Reddit Ads Cost Calculator

The math, top to bottom

A Reddit Ads budget is just a chain of multiplication. You start from the revenue you need and work backward to clicks. Every link in the chain is a number you can pull from your account or your CRM, which is why the calculator is opinionated about using real data instead of Reddit Ads Manager forecasts suggestions.

Lead generation, the long version

Lead generation has two conversion steps. The visitor clicks your ad, fills out a form (that is conversion one), and then your sales team closes a percentage of those leads (that is conversion two, the win rate). The math:

sales_required   = sales_goal / revenue_per_sale
leads_required   = sales_required / win_rate
clicks_required  = leads_required / form_conversion_rate
budget           = clicks_required * cpc

The form conversion rate is where most teams get optimistic. Real B2B landing pages convert 5 to 15 percent of paid clicks. Anything above 20 percent on cold paid traffic is either a measurement error, branded search, or a free tool.

Ecommerce, the short version

Ecommerce skips the lead step. The visitor clicks, lands on the product page, and either buys or leaves. One conversion rate, one math:

orders_required  = sales_goal / average_order_value
clicks_required  = orders_required / conversion_rate
budget           = clicks_required * cpc

Realistic Reddit Ads conversion rates for ecommerce sit between 1 and 5 percent depending on category, AOV, and how warm the traffic is. Branded shopping campaigns can hit 8 to 15 percent. Non-brand prospecting often sits at 1 to 2 percent.

What the result actually tells you

A budget number alone is meaningless without ROAS. The calculator shows ROAS for each scenario so you can sanity-check whether the spend is even profitable at your margin. Quick benchmarks:

• Ecommerce on thin margins (apparel, consumer goods): 4x ROAS or higher to be net positive
• Ecommerce on healthy margins (DTC, software, premium): 2.5x to 3x is workable
• Lead gen with high LTV (B2B SaaS, enterprise services): 1.5x to 2x is fine because revenue compounds
• Anything below 1x means you are paying Reddit more than you make on each sale

Why the budget you plan is usually wrong by month two

CPC drifts upward as competition enters the auction. Conversion rate drifts as ad fatigue sets in or landing pages decay. Win rate drifts as your sales team gets stretched. None of these break the calculator, but they do mean you should re-run the numbers every 30 to 45 days, not once at the start of the quarter and forget about it.

A worked example

Say you sell B2B software at $5,000 average contract value and your sales team closes 8 percent of qualified leads. You want $200,000 in new ARR from Reddit Ads next quarter. At a $4 CPC and a 10 percent form conversion rate, the math says you need 40 sales, 500 leads, 5,000 clicks, and $20,000 in spend, for a 10x ROAS. Comfortable margin. Drop the form conversion rate to 5 percent (a more realistic number for cold paid B2B traffic) and the budget doubles to $40,000 and ROAS halves to 5x. Still good. Now drop CPC up to $8 (competitive enterprise keywords) and budget doubles again to $80,000 with ROAS at 2.5x. Still profitable, but the margin for error is much thinner.

That sensitivity is why the worst-moderate-best framing matters more than any single number.