While some people turn on the radio to listen to music, others listen for their favorite radio show hosts. Radio shows can create a loyal fan base for the station when done right, but executives need them to be moneymaking endeavors as well. That is why it is important to know how to create a budget for a radio show.

Find out how much you have to spend. Most radio shows don’t make money on their own. Instead they work as a team with the other radio shows and disc jockeys to provide a high-quality station that people want to tune into. Most of the money the radio station receives comes from advertisers that pay to have their business or products promoted. Radio shows typically receive a set amount of money each year to work with and plan their budget based on the amount of ad revenue their show helps to produce for the station.

List the fixed expenses. You should know what fixed expenses will come out of your budget and how much each one will be. Some radio stations require that radio show hosts are paid for out of the radio show salary, while others include the salary in the station's operating budget. Talk to the finance person at your radio station to determine what fixed expenses to plan for.

Determine what flexible expenses you will have. Flexible expenses can vary in price. A promotion for a trip for a listener is considered a flexible expense since it can vary in price from one destination to another, and also since you don’t give it away all the time.

Use a spreadsheet to track your expenses in order to plan for next year. Once you’ve got your budget determined, you should track your expenses throughout the life of the budget. This way you can compare what you planned to spend to how you actually spent it. This will help you when planning a budget in the future.


There are a number of different budget software programs you can use to assist you in establishing a budget. You may be able to get free prizes to reduce the cost of some of your contests by getting sponsors from local businesses that advertise on your station.