TL;DR: If you're a SaaS founder or first-time marketing leader, setting your first marketing budget can feel like a guessing game. This guide breaks down how to build a smart, scalable SaaS marketing budget based on your goals, stage, and funnel maturity.
Plus, we’ll give you a free calculator and two downloadable templates to make the process simple and strategic.
Why Your First SaaS Marketing Budget Could Make or Break You
In the first week of most CMO engagements we do at Kalungi, the same question comes up: "What should our marketing budget be?"
Most founders either over-invest too early or under-invest and lose momentum. The truth is, there’s no one-size-fits-all answer. Your budget should reflect your:
- Growth vs. profitability goals.
- Current cash flow and runway.
- .\Sales and marketing team maturity.
- Stage of product-market fit (PMF).
Whether you're building from zero or rethinking your existing spend, this guide will help you:
- Avoid wasted spend.
- Prioritize the right marketing activities.
- Build a credible plan that aligns with investor expectations.
How Much Should You Spend? 2025 SaaS Budget Benchmarks to Guide You
According to Gartner, the average marketing budget sits at 7.7% of company revenue [2023]. But SaaS startups can vary widely based on goals:
Objective |
Budget Range (of ARR) |
Growth-focused (VC-funded) |
10–20% |
Balanced growth & profit |
8–14% |
Profit-first or bootstrapped |
5–8% |
[Source]
Important: Don't just plug in a percentage. Your funnel maturity, product readiness, and team capacity should guide what you're ready to invest in and manage effectively.
5 Smart Budgeting Principles Every SaaS Startup Should Follow
Every SaaS company has a different cash flow and constraints. Here's how I typically approach building a SaaS marketing budget:
1. Spend Responsibly
Only invest in channels you can actively manage. For example, don’t run paid search unless you have someone (in-house or agency) who knows how to manage, optimize, and track it properly.
A poorly managed $5,000/month Google Ads budget can easily turn into sunk cost.
2. Build a Foundation First
Don’t launch a blog, campaign, or event unless you can maintain it. Sustainable marketing matters more than flashy starts. Before anything else, make sure your:
- Messaging and positioning are clear.
- Website is conversion-ready.
- Funnel is set up to nurture and convert leads.
3. Look Bigger Than You Are
In a competitive SaaS market, perception matters. Quality trumps quantity. One polished landing page that builds trust is better than five half-baked assets.
High-growth startups win early attention by looking credible, consistent, and trustworthy.
4. Align Spend with Your Strategic Goals
Some startups are funded to capture market share fast. Others need to show a path to profitability. Your growth thesis should inform your budget range.
- Aggressive growth? Spend more, fast.
- Profit-focus? Optimize for CAC, not just volume.
5. Don’t Cut Corners on the Big Stuff
You can’t afford to get your positioning, brand, and website wrong. These are the anchors of your GTM strategy. Before spending on outbound or paid, invest in:
- Core messaging.
- Visual identity and branding.
- Website experience and technical setup.
A weak brand or unclear messaging = wasted acquisition dollars.
Here are more examples:
- Your team should not start with Paid Advertising or Content Marketing unless you have a solid infrastructure to nurture and follow up with prospects as they start hitting your site.
- Don't run campaigns unless you can do A/B tests.
- Don't promote content that is not good enough to drive engagement from your audience
- Don't hire young, high energy marketing team members unless you know what they should be working on, and you can provide the right coaching.
Ready to Build Your First Budget? Download Kalungi's FREE SaaS Marketing Budget Template Here 👇
Planning your first marketing budget? Use our free tools to:
- Estimate your ideal budget based on ARR, funnel maturity, and growth targets.
- Allocate spend across key categories: people, channels, content, ops, and more.
- Prioritize high-impact areas that align with your business goals.
What you get:
- SaaS Marketing Budget Calculator (based on 30+ Kalungi client engagements).
- Downloadable Budget Planning Spreadsheet Template.
- Category-by-category guidance + stage-specific investment tips.
Not Sure What to Spend? Let Our Calculator Show You
Use our calculator to get a benchmark marketing budget based on your:
- Annual recurring revenue (ARR).
- Growth vs. profitability focus.
- Funnel stage (pre-PMF, PMF, scaling).
SaaS Marketing Spend Mistakes to Avoid
Too many early-stage SaaS companies:
- Spend too soon on paid ads without infrastructure.
- Chase vanity metrics (impressions, followers).
- Hire junior marketers without clear priorities or coaching.
- Promote weak content because "we need to post something".
Budgeting isn’t just about what you spend, it’s about when and why you spend it.
Startups that scale well usually:
- Invest in strategy and brand first.
- Track CAC, LTV, churn, and pipeline velocity.
- Build internal marketing ops slowly and intentionally.
What Should Be in Your First Budget?
Your marketing budget should include:
- Team & Resources: In-house hires, agencies, contractors.
- Brand & Web: Messaging, visual identity, website dev and design.
- Campaigns & Content: Paid channels, SEO, blogs, assets, social, webinars.
- Tech & Tools: CRM, email platform, analytics tools, attribution.
- Events & Partnerships: Sponsorships, events, partner marketing.
Use our template to break down each of these by quarter or by month.
Your Budget Isn’t Just a Number, It’s a Growth Strategy
Your marketing budget should be a strategic signal. It reflects how confident you are in your go-to-market motion, how clearly you’ve defined your ICP, and how committed you are to building a pipeline that scales.
At Kalungi, we’ve seen what happens when SaaS companies get this right, and what it costs when they don’t. The companies that win are the ones who:
- Invest in the right foundations early.
- Budget for long-term scalability, not short-term tactics.
- Align marketing spend with strategic intent, not guesswork.
If you're unsure how much to spend, where to spend it, or how to build a budget your board will get behind, let’s talk.
Book a free discovery call with our team to walk through your goals and get expert guidance tailored to your growth stage.