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# Full-Funnel Marketing Calculator | ROAS, CPA, CAC & LTV

> Free full-funnel calculator: turn impressions, CPM, CTR, CVR, and AOV into ROAS, CPA, CAC, and LTV — with an LTV:CAC health check — in one shared model.

The Full-Funnel Marketing Calculator is a free in-browser tool that models an entire paid-media funnel end to end. Enter your media inputs (impressions, CPM), funnel rates (CTR, CVR), and unit economics (average order value, new-customer share, orders per customer, gross margin), and it derives every downstream metric — ad spend, clicks, conversions, new customers, revenue — plus the four headline outputs: **ROAS, CPA, CAC, and LTV**, and an **LTV:CAC** ratio. Because every metric shares one funnel model, changing any input updates all outputs, so you can see how a single lever (say, lifting CTR from 1.0% to 1.5%) moves ROAS and CAC together.

## How the funnel is calculated

The funnel volumes chain from impressions down to revenue:

- ad spend = CPM × impressions ÷ 1,000
- clicks = impressions × CTR ÷ 100
- conversions = clicks × CVR ÷ 100
- new customers = conversions × new-customer share ÷ 100
- revenue = conversions × AOV

From those, the four headline metrics and the health ratio:

- ROAS = revenue ÷ ad spend
- CPA = ad spend ÷ conversions (cost per conversion)
- CAC = ad spend ÷ new customers (cost per new customer)
- LTV = AOV × orders per customer × gross margin ÷ 100 (contribution basis)
- LTV:CAC = LTV ÷ CAC

For example: 500,000 impressions at a $12 CPM = $6,000 ad spend. A 1.2% CTR yields 6,000 clicks; a 3% CVR yields 180 conversions; a $90 AOV yields $16,200 revenue. That's a **2.7x ROAS**, a **$33.33 CPA**, and — at a 70% new-customer share — a **$47.62 CAC**. With 3 lifetime orders at a 60% gross margin, **LTV is $162**, an **LTV:CAC of 3.4:1**.

## Calculator Features

### Input Fields
- **Media**: Impressions, CPM (cost per 1,000 impressions)
- **Funnel**: Click-through rate (CTR %), conversion rate (CVR %)
- **Economics**: Average order value (AOV), new-customer share (%), orders per customer, gross margin (%)

### Results
- **Funnel at a glance**: impressions, clicks, conversions, ad spend, and revenue
- **Headline metrics**: ROAS, CPA, CAC, and LTV — formatted, with divide-by-zero surfaced as N/A rather than a misleading number
- **LTV:CAC health ratio** with a read against the 3:1 rule of thumb
- **Insights**: a blended-ROAS summary, an LTV:CAC health note, and a first-order-loss flag when CPA exceeds first-order contribution profit

## Frequently Asked Questions

### What is a full-funnel marketing calculator?
A full-funnel calculator models the entire paid-media path in one place — from impressions and CPM through CTR, CVR, and AOV — and derives the four metrics that matter downstream: ROAS, CPA, CAC, and LTV. Instead of computing each metric in isolation, you can change any upstream knob and instantly see how ROAS and CAC respond, because every metric shares the same funnel math.

### How are ROAS, CPA, CAC, and LTV calculated?
Ad spend = CPM × impressions ÷ 1,000. Clicks = impressions × CTR ÷ 100. Conversions = clicks × CVR ÷ 100. Revenue = conversions × AOV. From there: ROAS = revenue ÷ ad spend; CPA = ad spend ÷ conversions; CAC = ad spend ÷ new customers (conversions × new-customer share ÷ 100); and LTV = AOV × orders per customer × gross margin ÷ 100. LTV is computed on a contribution-margin basis, so set gross margin to 100% if you want revenue-based LTV instead.

### What's the difference between CPA and CAC?
CPA (cost per acquisition) is your media cost divided by all conversions. CAC (customer acquisition cost) divides the same spend by new customers only. When some conversions come from returning buyers, fewer of them are new, so CAC is higher than CPA. This calculator exposes a new-customer share so you can separate the two — set it to 100% and CAC equals CPA.

### What is a healthy LTV:CAC ratio?
The widely used rule of thumb is 3:1 — a customer should be worth about three times what it costs to acquire them, leaving room for overhead and profit after payback. Below roughly 1:1 you lose money on each customer; between 1:1 and 3:1 you are profitable but should improve retention, margin, or conversion before scaling spend. Much above 3:1 can signal you are under-investing in growth.

### Why does the first purchase sometimes lose money?
It's common — and often fine — for CPA to exceed the first order's contribution profit (AOV × gross margin), meaning the first order doesn't cover the cost to acquire it. Profitability then depends on repeat purchases (LTV). That's why the calculator surfaces LTV and the LTV:CAC ratio: a first-order loss is sustainable when lifetime value comfortably exceeds acquisition cost, and dangerous when it doesn't.

## Methodology & sources

The model uses standard paid-media funnel arithmetic. LTV is deliberately contribution-based (× gross margin) rather than gross-revenue, because acquisition decisions should compare cost to profit, not to top-line. The 3:1 LTV:CAC benchmark is a widely cited SaaS/DTC rule of thumb, not a hard rule — the right ratio depends on payback period, growth stage, and margin structure.

- Related tools: [ROAS Calculator](/resources/tools/calculators/roas-calculator), [MER Calculator](/resources/tools/calculators/mer-calculator), [CPM Calculator](/resources/tools/calculators/cpm-calculator), [Customer LTV Calculator](/resources/tools/calculators/customer-ltv-calculator)
- Browse all [marketing calculators](/resources/tools/calculators)

## Best Practices

### Model one lever at a time
- Establish a baseline from your actual campaign data, then change a single input to isolate its effect on ROAS, CPA, CAC, and LTV.
- Watch CAC and LTV together — a rising CAC is only a problem relative to the value of the customers it buys.

### Separate CPA from CAC
- Set the new-customer share below 100% when returning buyers are in your conversion mix, so CAC reflects the true cost of *new* customers.
- Use CAC (not CPA) against LTV when judging whether to scale spend.

### Judge LTV on contribution, not revenue
- Enter your real gross margin so LTV reflects profit. Leaving margin at 100% overstates lifetime value and flatters the LTV:CAC ratio.
- If the first order loses money on contribution, make sure repeat-purchase behavior (orders per customer) genuinely covers the gap before scaling.
