Enter your average cost per lead or conversion and the desired number of new conversions to determine the marketing budget.

## Marketing Budget Formula

The following formula estimates a marketing budget based on the desired number of new conversions for the period and the average cost per lead/conversion.

MB = NC * CPL
• Where MB is the marketing budget ($) • NC is the number of new conversions/sales/leads • CPL is the cost per lead/sale etc. ($/lead)

To calculate the marketing budget, multiply the number of new leads by the cost per lead.

## Marketing Budget Definition

What is a marketing budget?

A marketing budget is the total monetary value a company plans to make on marketing to generate sales/leads/etc.

What should my marketing budget be?

There are several ways to go about estimating a marketing budget. At the forefront of all estimations is the total amount of money a company has to work with. After that is considered, many companies like to create marketing budgets based on how many new customers they want to acquire.

## Example Problem

How to calculate a marketing budget?

First, determine the total number of new customers the company wishes to achieve for the period. In this case, a company wants to get 1,000 new customers in the next month.

Next, determine the average cost per lead the company spends to get a new customer. In this case, the company spends $100 per new customer. Finally, estimate a marketing budget for the month using the formula above: MB = NC * CPL MB = 1000 *$100

MB = \$100,000.00

## FAQ

What factors can affect the cost per lead (CPL)?

The cost per lead can vary significantly based on several factors, including the industry, the target audience’s demographics, the marketing channels used (e.g., social media, email marketing, search engine advertising), and the overall demand for the product or service. Additionally, the quality of the advertising content and the conversion optimization strategies implemented can also impact the CPL.