Marketing budgets can be a bit of a mess for many businesses, but it doesn't need to be—there's multiple proven growth formulas. I’ve put together a selection of marketing budget calculators based on some of the most common calculations utilised to help you determine yours. These marketing budget calculators include a revenue percentage-based calculation, a goal-based budget, and a customer lifetime value calculation method. The best budgeting approach will depend on your goals and business model, and I’ve added some extra tips below to help you decide which is best for you. Once you've worked this out, use the budget allocation calculator to split your spend between long and short-term goals.
Set a budget that aligns with your growth goals by targeting the number of leads or sales you want to achieve.
The goal-based marketing budget method allocates funds based on specific objectives, like acquiring a set number of customers or capturing a particular market share. This calculator uses the Cost Per Acquisition (CPA) model to keep spending aligned with tangible outcomes. For brand awareness or market share, you might start with Cost Per Thousand Impressions (CPM) as a baseline—but remember, you'll need more than just reach to drive results.
Brands with clear, measurable objectives, such as acquiring new customers or growing market share in a specific timeframe.
Allocating marketing budgets based on specific objectives, such as customer acquisition, can increase return on investment (ROI).
Businesses with specific customer or revenue targets and a clear understanding of CPA (Cost Per Acquisition). Often used by small businesses with a performance based-approach, especially if launching new products or entering new markets.
This method is sometimes used for channel allocation, rather than for a marketing strategy. Your marketing budget should consider multiple channels for best results. Multiple channels work together to amplify your message and increases overall returns.
Studies show spending between 5-10% of revenue on advertising support share of voice and maximises returns.
The percentage of revenue marketing budget method ensures that marketing spend scales with business growth. Multiple studies show that high-growth startups often allocate between 20%-50% of their revenue to marketing during initial phases to accelerate growth. Once established, businesses typically reduce this to 7%-15% to maintain momentum. (Harvard Business School, 2020).
Established businesses with steady revenue, aiming for a balanced growth approach.
5–10% of revenue to marketing has been found to increase share of voice which can drive strong returns. (Economist Dr Kite, 2023). New brands aiming for rapid growth should allocate above 20%.
Businesses that already have revenue benchmarks and want an easy, proportional budgeting method.
This method requires additional channel allocation methods, such as the 60:40 budget split, OKR formula, Pareto Principle or customer journey allocation framework.
Focus on what matters most—understand your customer acquisition costs and lifetime value for smarter budgeting.
Understanding the cost to acquire a customer and the revenue that customers generate over time is vital, especially for subscription business models.
Brands selling high value products that tend to require a longer lead time. Those focusing on holistic customer experience, looking to build brand awareness, nurture leads, and drive additional sales throughout the customer journey.
Research by McKinsey shows that brands investing across the customer journey are 20% more likely to sustain long-term growth and customer loyalty.
Businesses focused on maximising long-term customer relationships and recurring revenue. Ideal for SaaS, subscription boxes, or service-based businesses that rely on customer retention to drive revenue.
Once a budget has been determined considering allocating budget based on customer journey stages or the 60:40 budget split.
