Free tool Marketing budget calculator, worked back from revenue
Start with the revenue you need marketing to bring in, then pick how you plan: a target ROAS, a cost per new customer, or a share of revenue. The calculator gives the budget, the monthly spend and the new customers it implies, then splits it across channels. Add each channel’s ROAS and it shows whether the plan reaches the target or falls short.
- Budget from ROAS, CAC or % of revenue
- Channel split with expected revenue
- Runs locally
How much to spend, and where
Revenue and ROAS must use the same attribution window. Channel shares are optional; whatever is left goes to “other”.
For the whole period, e.g. a year.
Part of the target you expect marketing to bring in, in %. Empty = 100%.
Attributed revenue ÷ spend, e.g. 4 for 4×.
What you can pay to acquire one new customer.
Your own policy, e.g. 8.
In the same period: AOV × orders per customer, or price × months. Required for CAC.
For the monthly budget.
% of the budget.
Optional, e.g. 5.
% of the budget.
Optional.
% of the budget.
Optional; often hard to measure.
% of the budget.
Optional.
Marketing budget
$75,000
For the whole period
Budget by channel
Channel share × budget. Expected revenue only for channels with a ROAS.
| Channel | Share | Budget | ROAS | Expected revenue |
|---|---|---|---|---|
| Search ads | 40.0% | $30,000 | 5.00× | $150,000 |
| Social ads | 30.0% | $22,500 | 3.00× | $67,500 |
| Content and SEO | 20.0% | $15,000 | 2.00× | $30,000 |
| Email and CRM | 10.0% | $7,500 | 8.00× | $60,000 |
| Other / reserve | 0.0% | $0 | — | — |
| Total | 100.0% | $75,000 | 4.10× | $307,500 |
Share these inputs: the values go after the # in the link, so they never reach a server.
https://tapcub.com/tools/marketing-budget-calculator
Version v1.0Updated Update history
What the numbers tell you
Every method lands on the same three numbers — budget, ROAS and CAC — so you can check one against the others.
Marketing budget
The spend that the target and your chosen efficiency imply. If it is far above what you can afford, the target or the efficiency assumption has to move.
Implied ROAS and CAC
Whatever method you used, compare these with what your channels actually deliver. A plan built on a ROAS you have never reached is a wish.
Blended channel ROAS
What the channel mix returns at the ROAS you entered per channel. Shifting share to the higher-ROAS channel raises it — until that channel saturates.
Versus target
Positive: the mix covers the marketing-driven target. Negative: the shortfall in revenue at these channel numbers.
We do not suggest a “right” share of revenue for marketing. Published surveys differ by method, company size and sector; set it from your own unit economics.
Plan a budget in four steps
Work from the target down, then test the plan against your channel data.
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1
Set the target
Revenue for the period and the share marketing should drive; the rest comes from existing customers and direct demand.
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2
Pick the method
Target ROAS for ecommerce, target CAC for subscriptions and lead-based sales.
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3
Split by channel
Enter shares and, where you have them, each channel’s measured ROAS.
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4
Close the gap
If expected revenue falls short, shift budget or adjust the target before the period starts.
Budget = marketing-driven revenue ÷ target ROAS
Marketing-driven revenue = revenue target × share driven by marketing. The three methods are three ways to divide it.
- By ROAS: budget = marketing-driven revenue ÷ target ROAS (ROAS = attributed revenue ÷ ad spend)
- By CAC: new customers = marketing-driven revenue ÷ revenue per new customer; budget = new customers × target CAC
- By share of revenue: budget = revenue target × %
- Per channel: channel budget = budget × share; expected revenue = channel budget × channel ROAS
- ROAS depends on the attribution model and window; use the same ones for the target and the channel figures
Marketing-driven revenue
target × share
$600,000 × 50% = $300,000
Budget by ROAS
revenue ÷ ROAS
$300,000 ÷ 4 = $75,000
Budget by CAC
revenue ÷ value × CAC
$300,000 ÷ $240 × $80 = $100,000
Search ads
$75,000 × 40% × 5
$30,000 → $150,000
Blended ROAS
$307,500 ÷ $75,000
4.10×
A $600,000 year, half from marketing
A store targets $600,000 next year and expects half to come from marketing. It plans on a 4× ROAS. A new customer spends $240 in the year. Last year’s channel ROAS: search 5×, social 3×, content 2×, email 8×.
| Step | Calculation | Result |
|---|---|---|
| Budget | $300,000 ÷ 4 | $75,000 ($6,250 / month) |
| New customers needed | $300,000 ÷ $240 | 1,250 |
| Implied CAC | $75,000 ÷ 1,250 | $60 |
| Search 40%, social 30% | $30,000 × 5 + $22,500 × 3 | $217,500 |
| Content 20%, email 10% | $15,000 × 2 + $7,500 × 8 | $90,000 |
| Expected vs target | $307,500 − $300,000 | +$7,500 |
The mix just covers the target. Email returns the most per dollar but cannot absorb much more spend; the realistic lever is moving some social budget into search.
Where budget plans go wrong
Most plans fail on definitions, not arithmetic.
Mixing attribution windows
A 7-day click ROAS from an ad platform and a 30-day last-touch ROAS from analytics are different numbers. Plan with one.
Treating ROAS as profit
A 3× ROAS at a 30% gross margin loses money on the ad spend. Check margin × ROAS is above 1.
Assuming ROAS holds at any spend
Channels saturate: the next dollar usually returns less than the average. Scale in steps and re-measure.
Crediting all revenue to marketing
Repeat customers and direct demand would buy anyway. Set the marketing-driven share honestly.
Return per channel, measured
TapCub reads UTM parameters and ad click IDs on arrival and counts each order once on your site. Import spend and the channel ROI column is attributed revenue divided by spend.
Channel ROI
Import spend by CSV or ad platform connection and see return per channel next to the conversions it bought.
Learn moreFirst and last touch
The campaign that introduced a customer and the one that closed, on the same person.
Learn moreCampaign reports
Sessions, conversions and conversion rate per campaign, source and medium.
Learn moreMarketing budget questions
Still have a question?
Chat with the team behind TapCub — we usually reply within a few hours on business days.
How do I calculate a marketing budget from a revenue target?
Decide how much of the target marketing must bring in, then divide by your target ROAS. $300,000 of marketing-driven revenue at a 4× ROAS needs a $75,000 budget.
Should I plan with ROAS or CAC?
ROAS suits ecommerce, where each order is revenue in the period. CAC suits subscriptions and B2B, where you buy customers who pay over time. Both should give the same budget if the inputs are consistent.
What percentage of revenue should go to marketing?
There is no single right share. Surveys report different figures depending on who was asked and how. Work it out from your target ROAS or CAC and check what that implies as a share of revenue.
How do I split the budget across channels?
Start from each channel’s measured ROAS and how much more spend it can take. Put most of the budget where return is proven, keep a share for testing, and re-allocate monthly.
What ROAS do I need to break even?
Break-even ROAS = 1 ÷ gross margin. At a 40% margin you need 2.5× just to cover the product cost and the ad spend; anything above that contributes to profit.
Why does the implied CAC matter in ROAS mode?
It turns the plan into a cost per customer. If the implied CAC is above what a customer is worth over their lifetime, the plan buys revenue at a loss.
Update history
New features, fixes and data refreshes for this tool, newest first.
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· v1.0
LaunchedFirst release.
Missing something or found an error? Tell us — requests that come up often go into the next update. All tool updates
Measure the return you planned for
Connect your site and ad accounts to see revenue, conversions and ROI per channel against the plan.