Marketing Calculators: The Complete Guide to ROAS, CAC, CPM, CPC, CTR & LTV
Everything you need to measure, plan, and optimise paid advertising campaigns. All 9 marketing metric formulas, real benchmarks, and free calculators — in one place.
Free Marketing Calculators
Why Marketing Metrics Matter
Digital advertising is measurable in a way that no other marketing channel has ever been. Every click, impression, conversion, and dollar spent generates data. But data without the right formulas is noise.
The 9 metrics in this guide form a complete measurement system for any paid advertising programme — from a $500/month Google Ads account to a $5M/year performance marketing operation. Master these, and you can answer the questions that control budget decisions:
- Are my ads actually profitable? → ROAS, Break-Even ROAS
- What revenue do I need to hit my target? → Target ROAS
- How much does it cost to reach 1,000 people? → CPM
- What am I paying per click? → CPC
- What percentage of viewers are clicking? → CTR
- What percentage of clickers are converting? → Conversion Rate
- How much does it cost to acquire a customer? → CAC
- Is the customer worth what I paid to acquire them? → LTV:CAC
The Marketing Metrics Funnel
These 9 metrics connect in a funnel. Each one feeds the next:
ROAS — Return on Ad Spend
ROAS is the headline metric of paid advertising. It tells you how much revenue you generate for every dollar spent on ads.
A ROAS of 4.0 means you earned $4 for every $1 spent. But ROAS alone doesn't tell you if a campaign is profitable — you need to know your gross margin first. Calculate your break-even ROAS before evaluating any campaign.
→ Use the ROAS Calculator · Read the full ROAS guide
Break-Even ROAS
Break-even ROAS is the minimum ROAS you need to cover your costs. Running ads above this number is profitable; below it you're losing money.
At 40% gross margin, your break-even ROAS is 2.5. At 25% margin, it's 4.0. This is the number that turns ROAS from a vanity metric into an actionable profitability signal.
→ Use the Break-Even ROAS Calculator · Read the full guide
CPM — Cost Per Mille
CPM measures how much it costs to show your ad 1,000 times. It's the primary metric for brand awareness and display campaigns.
Industry average CPMs range from $2–$5 for display to $6–$10 for social to $15–$30+ for LinkedIn. High CPM isn't always bad — premium placements deliver better audiences.
→ Use the CPM Calculator · Read the full guide
CPC — Cost Per Click
CPC is what you actually pay every time someone clicks your ad. It's the cost efficiency metric for performance campaigns.
Max profitable CPC = (AOV × CVR × Gross Margin). If your average order is $100, conversion rate is 3%, and margin is 40%, your max CPC is $1.20. Bidding above this burns budget.
→ Use the CPC Calculator · Read the full guide
CTR — Click-Through Rate
CTR measures what percentage of ad viewers actually click. It's the signal that tells you whether your creative and targeting are connecting.
Average CTRs: Google Search 3–5%, Google Display 0.1%, Facebook/Instagram 0.9–1.5%, LinkedIn 0.3–0.5%. CTR also affects Quality Score on Google Ads — higher CTR = lower CPC.
→ Use the CTR Calculator · Read the full guide
Conversion Rate (CVR)
Conversion rate is the percentage of ad clicks that turn into a desired action — a purchase, sign-up, or lead form submission.
Average ecommerce CVR is 1–3%. SaaS free trial CVR is 2–5%. Lead gen CVR is 5–15%. Doubling your CVR halves your effective CPA — it's often the highest-ROI optimisation in a funnel.
→ Use the Conversion Rate Calculator · Read the full guide
CAC — Customer Acquisition Cost
CAC is the fully-loaded cost of acquiring one new customer. Unlike CPA (which only counts ad spend), CAC includes salaries, tools, and overhead.
SaaS CAC benchmarks: SMB $1,000–$2,500, Mid-market $5,000–$15,000, Enterprise $25,000+. CAC is only meaningful when compared to LTV.
→ Use the CAC Calculator · Read the full guide
LTV:CAC Ratio
LTV:CAC compares how much a customer is worth over their lifetime against what it cost to acquire them. It's the fundamental unit economics metric.
A 3:1 ratio is the standard healthy benchmark. Below 1:1 means you're losing money on every customer. Above 5:1 may mean you're underinvesting in growth.
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Frequently Asked Questions
What is ROAS and how do I calculate it?
ROAS (Return on Ad Spend) = Revenue from Ads ÷ Ad Spend. A ROAS of 4 means you earned $4 for every $1 spent. Use our ROAS calculator for instant results.
What is a good ROAS?
A 'good' ROAS depends entirely on your gross margin. A 3x ROAS is highly profitable for a SaaS product with 80% margins, but a 3x ROAS would be a significant loss for a physical goods retailer with 25% margins. Calculate your break-even ROAS first.
What is the difference between ROAS and ROI?
ROAS measures revenue relative to ad spend only. ROI accounts for all costs including COGS, overhead, and other expenses. ROAS is used to evaluate ad campaigns; ROI measures overall business profitability.
What is a good CAC?
CAC is only meaningful relative to LTV. A healthy LTV:CAC ratio is 3:1 or higher — meaning a customer generates 3x the value it cost to acquire them. The payback period (how quickly you recoup CAC) should ideally be under 12 months.
How do CPM and CPC relate to each other?
CPC = (CPM ÷ 1000) ÷ CTR. A $10 CPM with a 2% CTR gives a $0.50 CPC. Improving CTR lowers your effective CPC, making your budget go further.
What is break-even ROAS?
Break-even ROAS = 1 ÷ Gross Margin. If your gross margin is 40%, your break-even ROAS is 2.5. Any ROAS above this is profitable; below it you're losing money even when ads are 'working'.