Plan how much to spend on marketing and where it goes. Set the total as a percentage of annual revenue or work it out from the number of customers you want and what each one costs to acquire, then split it across channels by percentage.
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Set the budget by
$
Optional in goal mode (shows budget as % of revenue).
%
customers
$
Optional in % mode (shows customers the budget can buy).
Enter your values to see the result.
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How to use the Marketing Budget Calculator
Choose a method: a percentage of revenue, or a goal of new customers multiplied by your CAC.
Enter revenue and the percentage, or the customer goal and CAC.
List your channels one per line with the percentage each should get.
Read the total and the monthly and quarterly figures.
Check the channel table and adjust the split until it adds up to 100%; download it as CSV.
Example: a business with $2,000,000 in revenue spending 8% has a budget of $160,000 a year, or $13,333 a month. Giving paid search 30% means $48,000 a year ($4,000 a month).
Budget at different revenue levels
Annual revenue
5%
8%
10%
15%
$250,000
$12,500
$20,000
$25,000
$37,500
$500,000
$25,000
$40,000
$50,000
$75,000
$1,000,000
$50,000
$80,000
$100,000
$150,000
$5,000,000
$250,000
$400,000
$500,000
$750,000
$10,000,000
$500,000
$800,000
$1,000,000
$1,500,000
Use both methods as a cross-check: if the goal-based budget is far above your revenue-based number, either the goal is too ambitious for your margins or your CAC needs to come down.
Frequently asked questions
How much should a business spend on marketing?
A common rule of thumb is a share of revenue, often somewhere between about 5% and 15%. Established companies with steady demand tend to sit near the low end, while young, fast-growing companies often spend more. Industry surveys such as Gartner's annual CMO Spend Survey have reported averages of roughly 7% to 10% of company revenue in recent years, but the right number depends on your margins and growth goals.
How do I calculate a goal-based marketing budget?
Multiply the number of new customers you want by your customer acquisition cost. To win 400 customers at a $350 CAC you need a budget of 400 × $350 = $140,000. This links the budget directly to a sales target.
What is the 70/20/10 rule?
It is a simple allocation framework: about 70% of the budget on proven channels, 20% on promising channels you are scaling, and 10% on experiments. Use the preset to start from it.
Should salaries be part of the marketing budget?
It depends on your definition. Many companies keep staff costs separate and budget only for programs (ads, content, events, tools). Be consistent, especially when comparing with benchmark percentages, which may or may not include headcount.
How do I split the budget across channels?
Start from the channels that bring customers at the lowest CAC, give them most of the budget, and keep a smaller share for testing. Review the split monthly or quarterly using cost per lead and ROI by channel.
Why does it say my budget is over-allocated?
The channel percentages add up to more than 100%. Lower some of them until the total is exactly 100%, or the plan will cost more than the budget.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.