Express marketing spend as a share of revenue and compare it against sector norms.
The budget ratio is the share of annual revenue that marketing budget represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small. Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where higher is better.
Marketing Budget Percentage
Marketing Budget as Share of Revenue = Marketing budget ÷ Annual revenue × 100
Marketing Budget as Share of Revenue = Marketing budget ÷ Annual revenue × 100 The budget ratio is the share of annual revenue that marketing budget represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small.
Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where higher is better.
This calculator takes 2 inputs: Marketing budget, Annual revenue. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.