Planning an event, whether it’s a company holiday celebration, client dinner, or private gathering, starts with one key step: understanding how to budget for an event effectively. The right financial plan makes the difference between a seamless experience and one that quickly goes over budget. For more in-depth inspiration and guidance, visit the 2025 Holiday Guide on Chicago Planner Magazine, which includes additional planning tips, menus, and venue recommendations.
This article will help you understand how to budget for an event from start to finish, including how to calculate your per person spend, plan your food and beverage options, and manage hidden costs without sacrificing quality or guest experience.
How to Budget for an Event: Start With Your Total Budget
Before you can make any event decisions, determine how much you have to spend. Once you know that number, subtract taxes, gratuity, and service fees. In Chicago, these extra costs can range from 20 to 35 percent. It’s always better to plan conservatively by assuming the higher percentage. For example, if your total budget is $10,000, plan for about $3,500 in taxes and fees. That leaves you with $6,500 to spend on your venue, food, drinks, and décor. This approach ensures your working budget reflects the true amount you can use without surprises later.
Calculate Your Per Person Budget
After subtracting taxes and fees, divide the remaining amount by your estimated guest count. Always calculate using the higher end of your range. If you expect 75 to 100 attendees, base your budget on 100 people. Your per person number will help guide decisions for your food, drinks, and service style. It also ensures you are realistic about what you can offer without overspending. If you base your original budget on 100 people, but closer to the date you realize you have less, you can always add upgrades or additional touches that wouldn’t fit into the budget before.
Choose the Type of Event You Want to Host
Knowing how to budget for an event helps you determine what time of day and style best match your goals and spending power, because he time of day and format of your event play a big role in cost.
Brunch or Lunch: Daytime events are typically more budget-friendly and often have lighter menus. These are perfect for offices that want to celebrate and then let employees leave early. If you serve alcohol during the day, avoid liabilities and do not require employees to return to work.
Cocktail Reception: Cocktail-style events tend to have lower food costs since they focus on appetizers and drinks rather than a full meal. The ideal time frame is between 3 p.m. and 7 p.m. Avoid overlapping with dinner hours, which in the U.S. typically begin as early as 5:30 p.m. or as late as 8 p.m., unless your menu includes substantial food items. Passed appetizers, cheese and vegetable platters, and a few warm options usually strike the perfect balance.
Dinner: Evening dinners are usually the most formal and expensive. They may include multiple courses, entertainment, and longer rental times. A full dinner event typically requires the largest portion of your budget, but it also delivers the biggest visual and experiential impact.
Build Your Food Budget Wisely
When deciding on your menu, first consider how the food will be served. Buffets, plated meals, or stations each carry different costs and staffing needs.
Appetizers and Hors d’Oeuvres: Variety is important. Avoid repeating similar items in your appetizers and main courses. For example, if steak is the entrée, skip steak bites as an appetizer. Include a mix of vegetarian, seafood, and meat options, and offer something for everyone, including those with dietary restrictions.
Entrées: Most planners select from a few classics like chicken, fish, and steak. Add a vegetarian entrée to ensure inclusivity and make sure your menu feels balanced.
Dietary Needs: Ask your guests about dietary restrictions ahead of time, and be proactive about allergies and preferences. Vegan meals are a great addition and often cover several dietary needs at once. For larger events, plan to have one vegan meal per 50 guests, or more if your crowd leans health conscious. If a religious dietary request such as Halal or Kosher comes up, your venue must allow outside catering from a certified provider if they cannot prepare the meal internally. Providing advance notice to both the venue and caterer helps everyone prepare properly.
Plan Your Beverage Budget
Your drink selection can easily impact your total spend, so plan carefully. If your event budget is $3,000 for drinks and you have 50 guests, you should plan for around 30 percent in taxes and fees, leaving you with roughly $2,000 for the actual bar spend. That equals about $40 per person.
Drink Packages vs. Open Bar: A drink package offers predictability, as you pay a set rate per person for a defined period of time. This option works well if you want to avoid going over budget. An open bar, billed by consumption, can save money if people drink lightly, but it can also lead to higher costs if guests order frequently. If you opt for an open bar, ask about setting a cap to the total bar tab, or restricting certain items to control costs.
Wine and Beer: We recommend keeping it simple by offering one red and one white option, unless you’re doing something like cocktailing before dinner where you may want to offer a lighter red and white during cocktailing, and a heavier or more specifically paired set of wines to go with the entrée for dinner. Adding rosé provides flexibility and works well for both cocktail hours and main courses. For beer, select one light option, one IPA or hoppy choice, and one seasonal favorite. If you want to add something extra, create a signature cocktail or mocktail to personalize your event without significantly increasing costs.
Prepare for Hidden Costs
Some of the biggest budget surprises come from forgotten details. Always account for audio or visual equipment, music or entertainment fees, décor and lighting enhancements, parking, valet, or coat check, staff gratuities, printing, signage, or branded materials, and setup or delivery charges. Ask your vendors for detailed quotes that include taxes, fees, and labor so there are no unexpected add-ons later.
Confirm Guest Count Early
Venues and caterers require a guaranteed guest count before the event, usually a week or two in advance. This number determines how many meals you are financially responsible for, regardless of attendance. Always provide the most accurate number possible to avoid paying for unused meals.
Focus on What Guests Notice Most
If you need to make cuts, spend money on what will make the strongest impression, such as food, drinks, and atmosphere. Reduce costs in less noticeable areas like paper invitations, excess décor, or premium rentals. The best events feel intentional, not unnecessarily expensive.
By learning how to budget for an event effectively, you’ll ensure every decision, from the menu to the drinks, supports a professional, well-planned experience. For more holiday planning ideas, menu inspiration, and venue recommendations, read the full 2025 Holiday Guide from Chicago Planner Magazine.
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