How to use this calculator
The five inputs above are deliberately the smallest set that produces a meaningful answer. Each one shifts the result in a specific direction.
Annual revenue. The single biggest lever. The calculator uses revenue tiers (under $250K, $250K to $2M, $2M to $10M, $10M plus) because the right approach changes meaningfully across them, not just the dollar amount.
Business type. B2C businesses generally spend a higher share of revenue on marketing because consumer acquisition relies on demand creation. B2B leans on relationships and longer sales cycles, so the share is smaller.
Stage or growth mode. What you are doing this year. Establishing a brand, running an established business that could be marketed harder, actively growing, or optimising a mature operation. This positions you inside the band.
Primary acquisition channel. Where you intend most of the paid budget to go. The channel mix in the result shifts noticeably between Paid Ads, SEO and Content, Local Service Ads, and a balanced Mix.
Growth urgency. How aggressively you want to spend within the recommended band. Steady stays near the lower edge. Aggressive pushes toward the upper edge.
If your inputs felt uncertain, that is usually a sign your marketing is not yet a system. How we build one.
Factors that affect your marketing budget
The number you get depends on more than the five inputs we ask for. The five we picked are the largest levers; here is what they correspond to in reality.
Revenue tier
Marketing as a percentage of revenue is a rule that holds up loosely. Treat the bands as a sanity check rather than a target. A $400K landscaping business and a $400K SaaS startup have completely different unit economics; both should be in the same tier of this calculator but will arrive at very different budgets once close rate and lifetime value are factored in.
Business type
The SBA recommends roughly 7% to 8% of gross revenue for B2C and 2% to 5% for B2B. Real-world numbers cluster around those bands but skew higher for businesses that depend heavily on online demand capture. The calculator nudges B2C up and B2B down to reflect this.
Channel mix
Different channels produce different cost curves. Paid Ads require a minimum monthly spend to gather enough conversion data for the algorithm to optimise. Content and SEO compound slowly and need investment up front before they pay back. The allocation table in your result reflects the typical split for each primary channel.
Close rate and operational capacity
The calculator does not know your sales close rate, your average deal size, or how many customers your business can absorb per month. A great close rate lets you absorb a higher cost per lead. A weak close rate makes any marketing budget look expensive. Both are levers you control outside the calculator.
Understanding your results
The recommended monthly budget is a range, not a single number. That is deliberate. Anyone giving you a single number for a marketing budget either has more information than this calculator does, or is over-promising.
How the range is calculated
The calculator picks a percentage band from your revenue tier and business type. For example, B2C between $250K and $2M uses an 8% to 12% band. It then positions you within that band based on your stage (establishing, established, growing, or mature) plus your urgency (steady, growing, aggressive). The output is the middle 40% of the band centred on that position, applied to your annual revenue and divided by twelve.
How the channel allocation is calculated
Your primary channel selection picks a default split across five buckets: paid acquisition, content and SEO, tools and tracking, brand and creative, and a small buffer. Numbers reflect the typical split for SMBs we work with. They are starting points, not prescriptions. Real allocations are adjusted month over month based on what produces leads.
How to read it
If the monthly low feels uncomfortable, your business is not ready for that level of spend, or you do not have a marketing system that can absorb it. If the monthly high feels too small, you are likely under-marketed for your stage. Both are useful signals.
Want help running this budget? Get in touch.
What to consider next
A calculator that takes five inputs cannot give you a finished plan. It can give you a number to start from. Before you commit, take three more steps.
Know your numbers. Your cost per lead, your close rate, and your average customer lifetime value. Without these, you cannot tell whether the budget the calculator recommended is profitable or expensive.
Set up tracking before you set up spending. Analytics, call tracking, CRM, conversion events. The tools and tracking bucket in your allocation exists for this reason. If you spend money without tracking, you are guessing.
Decide on a commitment window. Most paid channels need 60 to 90 days of consistent spend before the algorithm has enough signal to optimise. Decide upfront how long you can fund the budget. If the answer is less than three months, scale the budget down to a level you can commit to.
For the long version of the framework that powers this calculator, read How much should a small business spend on marketing? (the article this tool is based on).
FAQ
How much should a small business spend on marketing?
Most established SMBs in the US spend between 5% and 12% of annual revenue on marketing, with monthly spend ranging from about $1,500 to $25,000 depending on stage and category. The calculator above narrows that range to a realistic monthly figure for your specific revenue and channel mix.
What percentage of revenue should go to marketing?
Use 7% to 12% if you sell directly to consumers, 4% to 7% if you sell B2B, and somewhere in between for mixed models. The exact figure within that band depends on whether you are establishing the brand, established but under-marketed, in active growth, or mature and optimising.
Is this calculator accurate for B2B vs B2C?
The calculator adjusts the percentage band based on whether you select B2B, B2C, or Mixed. B2C businesses generally need a larger marketing budget as a share of revenue because their customer acquisition is more demand-creation oriented. B2B leans on relationships and longer sales cycles, so the share is smaller.
Where do these channel allocation numbers come from?
The default allocations (paid acquisition, content and SEO, tools and tracking, brand and creative, buffer) come from what we see working across the SMBs Beefed Up runs marketing for. Allocations shift based on your primary channel selection. They are starting points; real allocations are adjusted month over month based on what produces leads.
Should I include agency fees in my marketing budget?
Yes. Whether the cost is your own time or an agency retainer, it is real marketing spend and should be inside the budget. We typically split agency cost across whichever bucket the work falls into (paid management, content, tracking) rather than treating it as a separate line.