Free tool
Marketing Budget Calculator
Two methods, two numbers, and the gap between them is what teaches you something. The first starts from your new customer target, the second from your revenue. When the target asks for more than your usual budget, either the target or the acquisition cost has to move.
A marketing budget is set either as a share of revenue or from objectives: the number of customers to win multiplied by the target acquisition cost. In 2025, marketing budgets averaged 7.7 % of company revenue in Gartner’s survey of 402 marketing leaders, the vast majority from companies with over 1 billion dollars in revenue.
Your Budget Is Set. What About Its Split?
The amount tells you how much to invest. An acquisition plan tells you which channels, in what order, and with what cost per customer to hold.
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How the two budgets are calculated
Budget by objective = New customers × Target acquisition cost Budget as share of revenue = Revenue × Share chosen
To win 1,200 customers at 350 € each, you need 420,000 € a year, or 35,000 € a month, which is 8.4 % of 5 million euros of revenue. At 7.7 % of revenue, the budget would be 385,000 €.
The two numbers do not cover the same scope. Gartner’s 7.7 % covers all of marketing: advertising, teams, tools and agencies. Paid media is only 30.6 % of it, or 2.4 % of revenue. If your target acquisition cost counts advertising only, compare your objective budget with that share.
The target acquisition cost depends on your margin: a customer who leaves 1,000 € of margin over their lifetime can cost far more than a 200 € customer. The CAC calculator and the LTV calculator give you both numbers.
What the calculation helps you prepare
- Your annual budget, backed by a target in numbers rather than by habit.
- The conversation with management: the gap between the two budgets shows what the target asks for on top.
- The monthly pace of your campaigns, from the target budget divided by twelve.
Frequently asked questions
How do I calculate a marketing budget?
Multiply the number of new customers you are targeting by the acquisition cost you accept to pay. For 1,200 customers at 350 €: 420,000 € a year. Then compare that figure with your usual share of revenue.
What percentage of revenue should go to marketing?
Gartner measured an average of 7.7 % of revenue in 2025, in a survey mostly of companies with over 1 billion dollars in revenue. It is a reference point, and your customer target is still what sets the right amount for you.
How much of the marketing budget goes to paid media?
In the same Gartner survey, paid media accounts for 30.6 % of marketing budgets, or 2.4 % of company revenue.
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