Enter your economics. Average order value and margin are required; the more you add, the sharper the read. All in your browser.
What you get
The numbers that decide how much you can spend to grow. From your order value, margin and retention the calculator works out your gross-profit lifetime value, and from your spend and new customers it works out your true acquisition cost. Put together, you get your LTV:CAC ratio, your payback period in months, and, most usefully for a paid-media budget, the most you can afford to pay per customer and per lead while staying profitable. That last number is the ceiling your target CPA and bids should never quietly drift above.
How it works
- Enter your average order value, gross margin, purchase frequency and how long customers stay.
- Enter your acquisition spend and new customers, or type your CAC in directly.
- Add your lead-to-customer close rate to get a maximum cost per lead.
- Read your LTV:CAC, payback and affordable ceilings, and open the full breakdown.
Why this is the number bids should obey
Most advertisers set a target cost per lead by working forward from a budget or a gut feel. The disciplined way is to work backward from what a customer is actually worth. If a customer returns, say, nine hundred dollars in lifetime gross profit, a healthy three-to-one ratio means you can spend up to three hundred to acquire one, and if a quarter of your leads become customers, that is a maximum of seventy-five dollars per lead. Now every bidding decision has a ceiling grounded in economics rather than hope. Businesses that know this number scale with confidence; those that do not tend to either overspend into losses or underspend and stall. This tool gives you the number, and keeps it honest by using gross profit, not revenue, throughout.
Frequently asked questions
What is a good LTV:CAC ratio?
How is LTV calculated here?
What is CAC and how do I find it?
What is payback period?
How does this set my max cost per lead?
Is it free?
Further reading from Digital Success
- SaaS Marketing Services
- PPC for fintech: 10 mistakes that burn your budget
- What to expect from a PPC management service: deliverables, reporting, ROI
- 7 US PPC agencies to consider in 2026 (and how to choose)
Want to hit these numbers, not just calculate them?
Knowing your max cost per lead is step one; building campaigns that consistently acquire under it is the work. Digital Success manages paid media to your unit economics. Talk to a specialist for a free review.
Talk to a PPC SpecialistPrefer proof first? See our case studies or our PPC management service.