Free Marketing Budget Allocator

How this tool computes its result

For each marketing channel you define (name, budget, expected ROI %), it computes projectedRevenue = budget × (roi/100 + 1) and projectedProfit = projectedRevenue − budget. Totals are summed across channels, and averageROI is a budget-weighted mean: Σ(roi × budget) / totalAllocatedBudget. A rule-based recommendation engine then checks: whether total budget is under- or over-allocated versus what you entered; whether the single best-ROI channel has ROI > 200% while using less than 30% of total budget (suggests increasing it); whether the worst-ROI channel is under 50% (suggests cutting it); whether average ROI sits below 100% or at/above 200%; and whether any channel's budget deviates from an even split by more than 40% of the total (flags concentration risk).

Worked example

Total budget $10,000, with "Google Ads" at $2,000 budget / 220% ROI and "Facebook Ads" at $4,000 budget / 40% ROI. Google Ads projects revenue of 2000 × 3.2 = $6,400 (profit $4,400); Facebook Ads projects 4000 × 1.4 = $5,600 (profit $1,600). Allocated budget is $6,000, leaving $4,000 unallocated (triggers the "you have $4,000 unallocated" recommendation). Average ROI = (220×2000 + 40×4000) / 6000 = 100%. Because Google Ads' ROI (220%) exceeds 200% and its $2,000 budget is under 30% of the $10,000 total, the tool suggests increasing its allocation; because Facebook Ads' ROI (40%) is under 50%, it suggests reducing that channel.

When not to use this tool

ROI per channel is a flat number you type in, not something derived from tracked conversions, and the model assumes constant ROI regardless of how much budget is poured into a channel — it has no diminishing-returns curve, so doubling a channel's spend is projected to exactly double its revenue.

Common mistakes

• - Entering ROI as a raw multiplier (e.g. "3" meaning 3x return) instead of a percentage — the formula treats the number as a percent, so "3" is read as a 3% ROI and produces an almost-flat profit projection.
• - Leaving a channel row with a blank name, budget, or ROI — the calculator silently drops any channel missing one of those three fields from every total and the channel breakdown, so it can look like a row "disappeared" from the results.
• - Allocating channel budgets that sum above the total budget — remainingBudget goes negative and is shown in red, but each channel's revenue/profit projection is still computed individually with no cap tied back to the stated total.

Related tools