Enter your average cost per lead or conversion and desired the number of new conversions to determine the marketing budget.
- Cost Per Engagement (CPE) Calculator
- Cost Per Lead (CPL) Calculator
- Customer Acquisition Cost (CAC) Calculator
- Customer Lifetime Value (CLV) Calculator
Marketing Budget Formula
The following formula is used to estimate 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)
Marketing Budget Definition
What is a marketing budget?
A marketing budget is the total monetary value a company plans to make on marketing in order 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 actually 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.
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