01
Allowable CAC
The maximum you can pay to acquire an order while keeping your target net margin.
Tool
Marketing break-even calculator.
How much can you actually pay to acquire an order? Connect margin, variable costs and profit target to get an allowable CAC you can defend — not an industry average.
01
Your inputs
Use average amounts excluding tax. Include payment fees, fulfilment, subsidised shipping and average returns in variable costs. Calculations stay in your browser: nothing you enter is transmitted.
02
Your threshold
Allowable CAC$48.00Maximum to reach your target net margin
Break-even CAC$60.00Profit = 0
Minimum ROAS2.5For the target margin
Target profit$12.00Per order
Order breakdown$120.00
- Product$48.00
- Variable costs$12.00
- Acquisition$48.00
- Target profit$12.00
To keep 10% net margin, your acquisition cost should not exceed $48.00 per order.
Reading
How to read these results?
Three different benchmarks. Confusing them leads to scaling campaigns that create no real profit.
02
Break-even CAC
The point where the order neither gains nor loses money. It is not a sustainable steering target.
03
Minimum ROAS
The revenue required per advertising dollar to reach the chosen margin.
MethodSee the formulas used
01
Gross margin in $ = average order value × gross margin in %02
Break-even CAC = gross margin in $ − variable costs03
Allowable CAC = break-even CAC − target profit04
Minimum ROAS = average order value ÷ allowable CACThe calculation reasons on the first order. For a subscription or repeat-purchase model, use a contribution margin observed over a consistent period rather than an unobserved theoretical LTV.
Want to check these numbers against your real data? Book a profitability audit ↗
Your campaigns are running. Are they creating profit?
The calculator gives the benchmark. The profitability audit checks your real data: observed margin, forgotten variable costs, tracking reliability and the media decisions that follow.
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