Are you throwing money at ads and not seeing the return?

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If your Pay-Per-Click (PPC) campaigns aren't generating the leads (and closings) you hoped for, the problem might not be your ads — it might be your budget.

Setting the right real estate PPC budget is crucial to avoid overspending and underperforming. The good news? You don’t need a massive ad budget to succeed—you just need to make smarter calculations based on cost per lead and expected ROI.

In this guide, we’ll break down how to calculate the perfect PPC budget for your real estate business—step by step—so you’re investing where it counts.

Step 1: Start with Your Cost Per Lead (CPL)

Before you can set a monthly budget, you need to figure out what one qualified lead actually costs you. Here’s the formula:

Cost Per Lead = Total Ad Spend ÷ Total Leads Generated

Let’s say you spend $1,000/month on Google Ads and get 25 leads. Your CPL is:

$1,000 ÷ 25 = $40 per lead

Understanding this number is critical. It helps you know how many leads your budget can realistically generate—and whether that number is enough to hit your sales goals.

Step 2: Determine How Many Leads You Need

The next step is to identify how many leads you need to consistently close deals. Ask yourself:

• How many leads does it typically take to close one deal?
• How many deals do you want to close per month?

If it takes 15 leads to close one transaction, and your goal is 3 deals per month, you’ll need:

15 × 3 = 45 leads/month

Now multiply that by your cost per lead:

45 × $40 = $1,800 PPC budget

Boom. There’s your starting monthly PPC budget.

Step 3: Factor in Your ROI

Let’s be real—this is what really matters. If you're spending $1,800 to generate $15,000 in commissions, you're in good shape. But if you’re spending $1,800 and only closing $3,000, it's time to reevaluate.

Here’s how to calculate your PPC return on investment:

ROI = (Revenue - Ad Spend) ÷ Ad Spend

So if one closed deal nets you $5,000 and you close 3 from your $1,800 ad spend:

($15,000 - $1,800) ÷ $1,800 = 733% ROI

That’s solid. A good rule of thumb in real estate is to aim for at least 5–10x ROI on your PPC investment.

Step 4: Don’t Forget to Account for Market Variables

PPC costs aren’t fixed. Here’s what can affect your budget:

• Your location: Competitive markets like Miami or Los Angeles will have a higher CPC (cost per click) than smaller towns.
• Your ad quality and targeting: Better ad copy, targeting, and landing pages = better conversions = lower CPL.
• Your competition: If other agents are aggressively bidding on your keywords, expect costs to rise.

Track your campaigns closely and adjust your budget and strategy monthly based on actual performance.

Step 5: Test, Optimize, and Scale

Once you’ve found a PPC formula that brings in quality leads at a solid ROI, don’t stop there. Keep testing:

• Try different ad platforms (Google vs. Facebook vs. YouTube).
• A/B test your landing pages.
• Use retargeting to re-engage site visitors who didn’t convert.

Real estate PPC is not “set it and forget it.” It’s an ongoing strategy that rewards the agents who pay attention and optimize regularly.

Final Thoughts: You Don’t Need a Big Budget—Just a Smart One

It’s easy to waste money on PPC if you’re not strategic. But with a clear handle on your real estate PPC budget, cost per lead, and a consistent eye on ROI, you can turn ad dollars into predictable closings every month.

Want help building a PPC strategy that works specifically for your market and goals? That’s what we do at Dippidi. We help real estate pros launch data-driven ad campaigns that generate real results—no fluff, no wasted spend.

👉 Book a free strategy session with our PPC team today and let’s calculate your perfect budget together.

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