---
title: "What budget should you set for your campaign?"
description: "How to size your reward budget, benchmark APRs, and iterate toward an efficient incentive campaign on Merkl"
canonical: "https://studio.merkl.xyz/guides/getting-started/campaign-budget"
category: "getting-started"
generated: "2026-10-12T12:01:06.981Z"
---

# What budget should you set for your campaign?

## Back to

- [Guides index (markdown)](https://studio.merkl.xyz/guides.md)
- [Guide (HTML)](https://studio.merkl.xyz/guides/getting-started/campaign-budget)

## Overview

The ideal campaign budget depends on your specific objectives and the distribution method you choose. Campaign budgets follow a natural supply-and-demand dynamic: liquidity providers want to maximize their rewards, while campaign creators aim to minimize costs. As a result, TVL typically scales proportionally with the reward budget you allocate.

## Account for fees

Depending on your campaign type, you need to account for fees differently. See the [fees section in the Merkl docs](https://docs.merkl.xyz/distribute-with-merkl/fee-model) for details on how fees apply to your specific campaign type before finalizing your budget.

## Choose the right distribution method

If you're concerned about over-distributing rewards early in your campaign, consider using a [**capped APR campaign**](https://docs.merkl.xyz/merkl-mechanisms/distributions#-capped-reward-rate-campaigns). This approach ensures you don't exhaust your budget too quickly if TVL starts low: rewards are distributed at a fixed rate relative to TVL rather than depleting a fixed token amount.

## Benchmark APRs

To gauge appropriate reward levels, you can:

- [**Browse existing campaigns**](https://app.merkl.xyz) on the Merkl app to see typical APRs in your category
- [**Use Merkl's APR simulator**](/simulators?open=apr) to model how different reward budgets translate to APRs at various TVL levels
- **Adjust your budget** based on competitive rates and your growth targets

## Start small, iterate often

We recommend launching shorter campaigns initially (e.g., 2 weeks) to test performance and gather data. You can then create follow-up campaigns with optimized parameters based on actual TVL, user engagement, and APR effectiveness.

This iterative approach minimizes risk and maximizes ROI.