Marketing budget calculator.

Most startups under $1 million a year spend 12–20% of revenue on marketing, ads and fees included. Enter your revenue to see the budget and the split.

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Use this month's revenue, or the revenue you're planning for. Marketing share includes ad spend and all fees.

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The short answer

A startup marketing budget is usually 12–20% of revenue under $1 million a year, including ad spend and fees. At $100,000 a month in revenue and 15%, that's $15,000 a month: about $5,000 for the team and $10,000 for ads. Keep fees and media as two separate lines so neither crowds out the other.

How much should a startup spend on marketing?

Published 2026 guidance puts companies under $1 million in revenue at 12–20% of revenue, companies at $1–5 million at 8–15%, and larger companies lower still. Early brands sit at the high end because they're buying their first customers.

That total covers everything: ad spend, agency or freelancer fees, creative and tools.

How should the budget split between fees and ads?

Ad spend needs to be big enough to learn from, and fees need to be small enough not to eat it. The calculator uses Wadabu's published pricing to split the budget:

Monthly revenue Share Budget Fees Ad spend
$30,000 15% $4,500 $0 $4,500
$50,000 15% $7,500 $2,000 $5,500
$100,000 15% $15,000 $5,000 $10,000
$200,000 12% $24,000 $5,000 $19,000

Under $5,000 a month in total, an agency fee would eat most of the media budget. Run one channel yourself or with a freelancer until revenue grows. From $5,000 to $10,000, one channel at $2,000 a month makes sense. From $10,000, the $5,000 bundle covers all four channels, with 10% of ad spend above $20,000.

Which channel should the first dollars go to?

Usually paid ads on Meta, because they create demand fastest and show what sells. Add email as soon as customers come in, since it turns first orders into second ones for no media cost. SEO comes next for brands whose buyers already search for the category.

How do you know if the budget is working?

Track MER, total revenue divided by total marketing spend, every month against your break-even. If MER holds above break-even, the budget can grow with revenue. If it falls, fix the channels before adding spend. Check yours with the ROAS and MER calculator.

For what each budget level buys from an agency, see digital marketing packages for startups and what a growth marketing agency costs. Or see all free marketing calculators.

Frequently asked questions

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How much should a startup spend on marketing?
Startups under $1 million in annual revenue commonly spend 12–20% of revenue on marketing in 2026, including ad spend, fees, creative and tools. Brands between $1 million and $5 million usually spend 8–15%.
Does a marketing budget include ad spend?
Yes. A marketing budget should include ad spend plus agency or freelancer fees, creative and tools. Tracking fees and ad spend as two separate lines keeps either one from quietly crowding out the other.
How should a startup split its budget between agency fees and ads?
Ad spend should stay large enough to learn from. Under about $5,000 a month in total, an agency fee eats too much of it. From $5,000, one channel at around $2,000 fits; from $10,000, a multi-channel team fits, with the rest in ads.
Is 15% of revenue too much to spend on marketing?
Not for an early-stage consumer brand buying its first customers. 15% sits in the middle of the common 12–20% range for companies under $1 million a year. The test is whether MER stays above break-even as spend grows.

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