Why set budget as a share of revenue?
Tying marketing spend to revenue keeps it proportionate as the business grows and makes it easy to discuss with finance. There is no single right percentage — it depends on your margins, growth goals, competition and whether you are launching or maintaining. Pick a figure you can defend, then test it.
The formula
Annual budget = Annual revenue × Budget %
Monthly budget = Annual budget ÷ 12
Channel budget = Annual budget × Channel share
If your channel percentages do not add to 100, the calculator scales them proportionally and tells you.
How to use it
Enter last year’s revenue or this year’s target, choose a percentage, then adjust the channel split to match where your customers are. Start with channels you can measure, keep a slice for testing something new, and review the split each quarter based on results.
Worked example (hypothetical numbers)
A business with KES 12,000,000 in annual revenue sets aside 8%: KES 960,000 a year, or KES 80,000 a month. With 30% on social ads, that channel gets KES 288,000 a year (KES 24,000 a month); 20% on search gets KES 192,000.
What the budget should cover
Decide upfront whether the budget includes only media spend or also creative production, tools, agency fees and staff. Mixing them up is the most common reason budgets run out mid-year.
Frequently asked questions
What percentage of revenue should I spend on marketing?
It depends on your margins and goals. New businesses and launches often spend proportionally more; established businesses with strong word of mouth may spend less. Test, measure and adjust.
Should the split be the same every month?
Not necessarily. Many businesses weight spend towards peak seasons such as back-to-school or December.
Does this include agency fees?
Only if you include them. Decide whether your budget is media-only or all-in, and stick to it.