Marketing Budget Calculator

Work out how much to spend on marketing, either as a share of revenue or built up from a customer target, then see a suggested split across channels.

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Marketing Budget Calculator

Work out how much to spend on marketing, either as a share of revenue or built up from a customer target, then see a suggested split across channels.

Your numbers

Figures in

No match found.

Your total revenue for the past twelve months, or your realistic target for the year ahead.
Younger, faster-growing businesses typically need to spend a higher share of revenue to build awareness and pipeline. This sets a suggested starting range, which you can still adjust.
12%
1%40%
How many new paying customers you need to acquire to hit your growth goal.
What you can afford to spend, on average, to acquire one customer. If you don't know this yet, use the CPA calculator on this site to work it out from your margins.
Changes the suggested channel split below. B2B tends to lean on search and events, B2C tends to lean on paid social and content.
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Studies commonly cited by Harvard Business School put growth-stage marketing spend at 20 to 50% of revenue, settling to 7 to 15% once established. Treat any percentage as a starting range, not a rule.

Suggested annual marketing budget
—
Waiting for your numbers
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—Monthly budget
—Weekly budget
—Share of revenue
Enter your revenue or your customer goal on the left, and your suggested budget appears here instantly.
Suggested channel split
Want an actual marketing plan built around this budget? Get a marketing plan

Percentages and channel splits shown are general industry benchmarks, not a guarantee of results, and vary widely by industry, competition and growth stage. Live currency conversion, when turned on, uses real exchange rates and is shown as an approximate reference only. Rates by ExchangeRate-API, updated once daily. Use this as a planning starting point, not a fixed formula.

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01Overview

How much should you spend on marketing?

Most businesses set their marketing budget by guessing or by copying last year. A better approach is to anchor it either to revenue, the way most established companies do, or to the number of customers you need to hit your growth target.

This free marketing budget calculator does both. Choose percentage of revenue to set spend as a share of income adjusted for your business stage, or goal based to work back from new customers and target cost per acquisition. It then suggests a split across channels for B2B or B2C.

Treat the result as a starting range. The right budget is the one you can measure, adjust monthly and justify with results.

Quick answer

A common guide is 7% to 15% of revenue for established businesses and 20% or more for early-stage companies chasing growth. For a goal-based budget, multiply the new customers you need by your target cost per acquisition.

  • Free, no sign-up
  • Revenue or goal based
  • B2B and B2C channel split
  • Any currency
02How to use

How to use the Marketing Budget Calculator

Choose the method that matches how you plan. Many teams run both and compare.

  1. Pick a method

    Percentage of revenue for steady planning, goal based when you have a specific customer target.

  2. Enter your numbers

    Annual revenue and business stage, or new customers needed and target CPA.

  3. Choose B2B or B2C

    This changes the suggested channel split below the result.

  4. Adjust and review

    Move the slider to test scenarios, then revisit the budget every quarter against real CPA.

03How it works

How the marketing budget is calculated

Two methods, each useful in a different situation.

Two ways to set the budget
Budget=Revenue × Marketing % or New customers × Target CPA
$2,000,000 × 12% = 160 × $1,500 = $240,000
The 70 / 20 / 10 split
70%20%10%
Proven channels 70%Promising channels 20%Experiments 10%
Budget formulasRevenue method: Budget = Annual revenue x Marketing %Goal method: Budget = New customers needed x Target CPAMonthly budget = Annual budget / 12

Plan to hold back 10% to 15% of the budget for testing new channels and creative.

Worked example

A B2B software company plans next year.

Annual revenue
$2,000,000
Stage
Established, growing
Marketing share
12%
Annual budget
$240,000
Monthly
$20,000
Cross-check: 160 new customers at a $1,500 CPA also needs about $240,000, so both methods agree.
04Reference

Typical marketing spend by business stage

Broad guide ranges. Industry, margins and competition can move these up or down.

Startup or early growthAwareness, demand, testing channels
20% to 40%
Established, growingScaling proven channels
10% to 20%
Mature, stableRetention, efficiency
5% to 10%
B2C ecommercePaid social, search, email
10% to 25%
B2B servicesSearch, LinkedIn, content, events
5% to 15%
0%10%20%30%40%
05Tips

How to spend your marketing budget well

The size of the budget matters less than how quickly you move money to what works.

Do this

  • Use the 70/20/10 splitAbout 70% on proven channels, 20% on promising ones and 10% on experiments.
  • Budget by month, review weeklySmall weekly shifts toward the best cost per acquisition compound over a year.
  • Include the hidden costsCreative production, tools and agency fees often add 20% or more on top of media spend.
  • Plan for seasonalitySpend more in your peak buying months and less when demand is naturally low.

Budgeting mistakes to avoid

  • Spreading too thinFive channels with tiny budgets rarely give any of them enough data to work. Start with two or three.
  • Cutting first in a downturnCompetitors who keep spending often take market share cheaply when others go quiet.
  • Ignoring retentionKeeping customers is cheaper than finding new ones. Reserve budget for email and loyalty.
  • Setting and forgettingBudgets should move with results. Review quarterly at least.
06FAQ

Frequently asked questions

What percentage of revenue should go to marketing?

A common guide is around 7% to 15% for established businesses and 20% or more for startups focused on growth. Your margins and growth target matter more than any rule of thumb.

How do I calculate a goal-based marketing budget?

Multiply the number of new customers you need by your target cost per acquisition. 200 customers at a $250 CPA needs a $50,000 budget.

How should I split my budget across channels?

B2C businesses usually lean on paid social, search and email. B2B businesses lean on search, LinkedIn, content and events. The calculator suggests a split for each.

Should a small business spend on marketing?

Yes, but focus. One or two well-run channels will outperform a small budget spread across many.

Does the budget include salaries and tools?

It can. Many businesses track media spend separately from people and tools. Decide which you mean and stay consistent.

How often should I review my marketing budget?

Review performance monthly and reset the budget at least quarterly.

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