Free tool

Marketing budget calculator

Use this marketing budget calculator to work out how much to spend each month, from your turnover and from the jobs you want to win.
1

Where do you want the business to go?

Pick the pace that fits this year.
Yearly turnover£150,000
2

What you need from marketing

We work backwards from the jobs you want.
Suggested monthly budget
£0

By turnover£0
By jobs needed£0
Leads needed0
Yearly budget£0

How the marketing budget calculator works

Turnover rule

A set share of your yearly turnover, based on whether you want to hold steady, grow steadily or grow fast.

Jobs-needed method

The jobs you want, divided by the share of leads you win, then multiplied by what each lead costs.

Which one to use

Start with the jobs-needed figure. Use the turnover rule as a check that the spend is sensible.

How to calculate a marketing budget

Two ways to set a budget, how to split it across channels, and a sample marketing budget for a trade business.

Sample

A sample marketing budget

A trade business turning over £150,000 a year, using the turnover method:

GoalShare of turnoverPer month
Hold steady6%£750
Grow steadily10%£1,250
Grow fast14%£1,750

Then check it against the jobs-needed method: the jobs you want, divided by the share of leads you win, multiplied by your cost per lead.

Allocation

How to allocate your marketing budget

Fund the basics first: a website that turns visits into calls, and a Google Business Profile that is kept up to date. Then put paid ads behind whatever brings the cheapest leads, and keep SEO running so your cost per lead falls over time.

Benchmarks

Average marketing budget by industry

Most small businesses spend somewhere between 5% and 15% of turnover on marketing. Trades with high job values, such as builders and roofers, can justify the top of that range because one extra job pays for months of marketing.

Marketing budget questions

Most small businesses spend between 5% and 15% of turnover on marketing. Around 5 to 8% keeps things steady, 10 to 12% supports steady growth, and 12 to 15% suits a push into a new area or service. For trades, working back from the jobs you want is often more accurate.

Divide the jobs you want each month by the share of leads you win. That gives the leads you need. Multiply it by your cost per lead. Six jobs at a 25% win rate needs 24 leads, and at £40 a lead that is a £960 monthly budget.

Not always. Many trades get more enquiries in spring and summer and fewer around Christmas. Keep a steady base for SEO and your Google Business Profile, then move ad spend up or down with the season and with how full your diary already is.

Everything you pay to get enquiries: ads, lead sites and directories, SEO, your website and any agency fees. Leave out the cost of doing the work itself. Counting it all in one place is the only way to see what each new job really costs you.

Use two methods and compare them. Take a share of turnover, around 5 to 15% depending on how fast you want to grow. Then work backwards from the jobs you want: divide them by your win rate to get leads needed, and multiply by your cost per lead.

Start with what makes every other channel work: your website and Google Business Profile. Put ad spend behind the channel with the lowest cost per lead, and keep a steady amount on SEO so leads get cheaper over time.

For most trade businesses they are the same thing, because nearly all enquiries now start online. A digital marketing budget covers SEO, ads, your website and social media.

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