Marketing Budget Calculator

What percentage of revenue should you invest in marketing? Global B2B/B2C companies spend an average of 7-8% of revenue, B2B/SaaS median is 8-10% ARR. Find out if you are in a healthy range or underinvesting.

Total annual revenue of the company

All marketing costs per year

Marketing as % of Revenue
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What to include in the marketing budget?

Global Benchmarks

B2B Average
7-8% of revenue
B2B/SaaS Median
8-10% ARR
B2C Average
7-8% of revenue
High-growth Startups
15-25%+ (aggressive acquisition)

How we calculate it

Marketing % = (Marketing Budget / Turnover) × 100

Example

Annual turnover $500,000, marketing budget $40,000:

Marketing % = (40,000 / 500,000) × 100 = 8%

Which is consistent with the market average, but can still mean lost growth opportunities.

Budget Distribution Tips

  • Allocate 60-70% to proven channels (performance)
  • Reserve 20-30% for testing new channels
  • Keep 10% for seasonal opportunities
  • Review allocation quarterly based on results

Frequently Asked Questions (FAQ)

Should I include salaries in the budget?

Yes, if you want to see the "true cost" of marketing, you must include people (salaries) and agencies. Many companies make the mistake of tracking only "Media Spend" (credit to Facebook) and then wonder why their total P&L (Profit and Loss) doesn't add up.

How much to invest when starting a business?

At the start (Launch phase), don't look at % of revenue because revenue is zero or small. You must invest "upfront". Prepare a fixed budget for the first 6-12 months that you are willing to "burn" to acquire initial customers and data.

How to distribute budget over time?

B2B has strong seasonality (summer and Christmas are often dead, spring and autumn are top). Distribute the budget dynamically - 40% in Q4 (if e-commerce) or 40% in Q2+Q4 (if B2B). Don't spend the budget evenly 1/12 every month if there is no demand.

Why it matters

Setting a marketing budget is one of the hardest decisions for business owners. "How much is too much?" This calculator gives you guardrails based on market standards.

It helps you justify the budget to investors or partners and ensure you aren't growing too slowly (underinvesting) or burning money without effect (overinvesting). Remember: Marketing is not a cost, but an investment that should generate future returns.

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