Marketing Budget Calculator

Instructions for Using the Marketing Budget Calculator

Use this Marketing Budget Calculator to determine your idea marketing budget:

Step 1: Input Your Annual Revenue

This is the total income your business earns in a year before expenses.

Step 2: Enter the Marketing Percentage

Input the percentage of your revenue you plan to allocate to marketing. (A typical range is between 5% to 10% of your annual revenue.)

Step 3: Provide the Lifetime Customer Value (LCV)

Enter the average revenue that a customer brings to your business over the entire relationship. This value helps estimate potential revenue from new customers.

Step 4: Input Customer Acquisition Cost (CAC)

Enter the average cost to acquire a new customer. This includes all marketing and sales expenses divided by the number of new customers acquired.

Step 5: Specify the Number of New Customers Desired

Input the number of new customers you want to gain within a specific period.

Step 6: Click “Calculate”

The calculator will compute your marketing budget based on both your revenue and customer acquisition costs.

Notes:

If the recommended budget seems too high or low, you can adjust the input values and click “Calculate” again to see how changes affect your marketing budget.

Consider your industry norms and business goals when deciding on the marketing percentage and number of new customers desired.