Free tool

Break-even CPA & LTV calculator

Work out your customer lifetime value and the most you can spend to win a customer or a lead, on the first sale and over the whole relationship, with a target that keeps you profitable.

  • Free, no sign-up
  • Results in seconds
  • Built by the JuvioX team

Gross margin is the share of each sale left after product, delivery or service costs, before marketing. For one-off purchases set purchases per year and years to 1.

Target cost per customer (CAC)

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Break-even CPA, first sale

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Break-even CPA, lifetime

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Max cost per lead, first sale

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Target cost per lead

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Customer lifetime value

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Quick answer

How do you calculate break-even CPA?

Break-even CPA is the most you can pay to win a customer without losing money on the sale. Multiply your average order value by your profit margin: a $200 order with a 30% margin gives a $60 break-even CPA. Paying more than that loses money on the first sale, unless customers buy again.

How it works

Three steps, no sign-up

  1. 01

    Enter your sale and margin

    Average order or deal value and the gross margin you keep after product or delivery costs.

  2. 02

    Add repeat business

    How often a customer buys per year and for how many years they stay.

  3. 03

    Set your targets

    Your lead-to-customer rate and the LTV to acquisition cost ratio you want.

FAQ

Questions about this tool

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What is break-even CPA?

The cost per acquisition where the profit from a new customer exactly pays for winning them. Above it, each new customer loses money on the first sale.

What is a good LTV to CAC ratio?

A ratio of about 3:1, where a customer brings three times more gross profit than they cost to acquire, is a common target. Lower leaves little room for other costs; much higher can mean you are under-investing in growth.

Should I bid on first-sale or lifetime value?

Bidding on lifetime value lets you win more customers, but only if you can afford to wait for repeat purchases and your retention numbers are real. Many businesses target somewhere between the two.

What is the difference between CPA and CAC?

CPA (cost per acquisition) is usually measured inside an ad platform for one action, like a lead or purchase. CAC (customer acquisition cost) is the total cost of winning a paying customer, including all marketing and sales costs.

How do I lower my CPA?

Improve the conversion rate of your landing pages, cut the searches and audiences that do not convert, and make sure conversion tracking is accurate, so bidding optimizes toward real customers.

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