TikTok Ads budget calculator

2026 benchmark round-ups put TikTok's average between US$0.10 and US$1.00 per click, with a CPM around US$4.80 and a click-through rate near 0.6% (Mega Digital). Studies that count only conversion-focused campaigns land at US$1.10–$1.40. In Canadian dollars, $0.50–$1.50 is a sensible planning range; the preset uses $1.00. TikTok sets a minimum daily budget of about US$50 per campaign, so the real floor is budget, not cost per click.

Low. The same benchmarks show a platform average around 2% but most individual industries at 0.4–0.8%, and that is for e-commerce purchases from in-feed video. For a local service business, 1–2% of visitors contacting you is a fair starting point, which is why the preset is 1.5%.

It can for restaurants, salons, fitness, retail and anything that films well, and it reaches under-35s cheaply. It is weaker for trades and professional services, where people search rather than scroll. Creative matters more than targeting here: native-looking vertical video outperforms polished ads, and you need new clips every couple of weeks.

It depends on your margin. If you keep 50% of each sale after delivering it, you need a ROAS of about 2× just to break even and 4× or more to make the campaign clearly worth it. Online stores with thin margins need higher ROAS than a service business where one customer is worth thousands.

Enough to get real data. A campaign that only buys a handful of clicks a day takes months to tell you anything, so a sensible starting budget is one that buys a few hundred clicks a month at your industry's cost per click. Use the calculator to see what that means in dollars for your numbers, then scale up only once leads are coming in at a cost you can live with.

It varies enormously by industry and city. Retail and restaurant keywords are often under $2, local trades and professional services commonly run $5 to $20, and legal, insurance and HVAC emergency keywords can pass $30 in Toronto and the GTA. Google Keyword Planner shows free estimates for your own keywords and area.

ROAS compares ad revenue to ad spend only. ROI compares profit to total cost, so it also subtracts what the product or service cost you to deliver and any agency or management fee. A 3× ROAS can be a good ROI for a consultant and a loss for a store selling low-margin goods.

For a local service website, 2% to 5% of paid visitors contacting you is typical, and a focused landing page with one clear call to action can reach 5% to 10%. If yours is under 2%, fixing the page usually improves results more than spending more on ads.

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