Step 1: Customer Value
LTV components
Customer Value
500100,000
20%95%
1/year24/year
6 months120 months
Profitable Acquisition
$124,750.00 headroom per customer
Breakeven CPA
$126,000.00
Max spend per customer at 100% ROAS
Current CPA
$1,250.00
Your actual acquisition cost
Max CPA for 300% ROAS
$42,000.00
To hit your target return
Current ROAS
10080.0%
Target: 300%
Payback Period
4 months
Target: 12 months
CPA Headroom
$124,750.00
Room to scale
Ad Funnel Performance
Monthly Clicks2000
Leads Generated160
Customers Acquired8.0
Cost Per Lead$62.50
Budget Recommendation
Max Profitable Spend$336,000.00
Max Breakeven Spend$1,008,000.00
Room to increase budget by $326,000.00
Related Calculators
Calculator Knowledge Base and Scientific Documentation
Quick Reference
Quick Reference
The Scientific Model
The Scientific Model
Breakeven Ad Spend Formula
Formula
Why this approach:
People Also Ask
People Also Ask
- What is breakeven CPA?
- Breakeven CPA is the maximum amount you can spend to acquire a customer while still making zero profit. Any CPA below this means you're profitable; above it means you're losing money per customer.
- How do I calculate maximum allowable CPA?
- For a target ROAS, divide your LTV by the target ROAS percentage. For example, with $10,000 LTV and 300% target ROAS, max CPA = $10,000 / 3 = $3,333.
- Should I spend up to my breakeven CPA?
- No. Operating at breakeven means zero profit. Set a target ROAS (typically 300%+) and calculate your max CPA accordingly. This ensures healthy profit margins while scaling.