&Marketing’s Marketing Budget Calculator
Our marketing budget calculator provides calculations for a marketing budget based on your industry. The calculator also offers the number of new clients you need to reach your goals and factors in your internal marketing staff overhead.
To use this calculator, input your annual revenue and growth goals just like with the simple marketing budget calculator above. Then add your annual average customer value to see how many new clients you need in order to achieve that new revenue goal.
From there, input your average cost per lead (how much it costs you to bring in a new lead to your business) to understand the baseline budget needed before paying your marketing staff. You can toggle this category manually to select what you already know you need to pay your marketing employees. Now, choose your industry to calculate your recommended overall marketing budget.
In essence, this marketing budget calculator takes the industry average for the percent of annual revenue usually spent on marketing and multiplies it by the annual revenue. Then it adds an additional percentage based on your growth goals. For example, if you’re in the Consumer Services industry and select “low business growth,” the calculator will multiply your annual revenue by 18.9%. If you choose “aggressive business growth,” the formula adds 5% to that 18.9% for a total of 23.9%. It then takes that percentage and multiplies it by your annual revenue to determine overall marketing budget.
Digital vs traditional spend is a simple way to calculate out how much of the overall marketing budget you should spend toward digital efforts (automation, email, social, paid search) rather than traditional efforts like direct mail, billboards, and events.
Finally, and just as importantly, the tool calculates the difference between the baseline budget after paying an internal marketing team and the overall recommended marketing budget. If the difference is positive, that indicates a leftover budget. If the difference is negative, that indicates costs may need to be cut in order to reach your business growth goals.
To get a deeper, more detailed look at your recommended marketing budget and how to spend it, fill out the contact fields at the bottom of this calculator and someone on our team will reach out!