Budget Calculus is an interactive technology solution that quantifies the marketing budget required to achieve the sales or revenue target for marketing-driven brands.

The solution brings to life objective-and-task budgeting principles, also known as DAGMAR methodology, to evaluate the required budget level (for a user-defined sales growth target).

Devised by Russell Colley, the objective-and-task approach to budget setting has stood up to peer review and is taught widely by leading marketing academics.

The required budget-level is determined based on rates of conversion through the marketing funnel.

First, the number of new customers needed to achieve the sales target is calculated. Then, based on current conversion rates through the funnel, the solution quantifies the shift in key mid-funnel and upper-funnel metrics that is necessary. Finally, Budget Calculus costs-up the optimal marketing mix to fill the funnel commensurately. The propensity of each marketing channel to deliver reach at the effective frequency in the most cost efficient manner underpins the costed-up budget.

Once Budget Calculus has been set up, users log in securely online and are able to scenario plan quickly and efficiently. Outputs include the size of marketing budget required, the projected impact on key metrics throughout the marketing funnel, a robust estimate of the Return on Investment (ROI) that can be expected from the planned level of marketing expenditure, and guidelines for the optimal mix across offline and online channels.