Ad Spend Calculator

    SHOULD MY STARTUP PAY TO ADVERTISE?

    Don't listen to people who tell you paid advertising isn't a good idea. If an ad produces the right behaviours (e.g. sign ups to your site) at the right price, it's absolutely worth doing. This tool helps you understand what you can afford to pay for advertising, based on the economics of your business and the conversion rate of your advertising and sales funnel.

    BUSINESS METRICS

    LTV - Life Time Customer Value

    $

    %

    $750

    CAC - Customer Acquisition Cost

    CAC = Customer Aquisition Cost. Let's assume here that this is going to be your only CAC for these customers. CAC no more than 1/3 LTV is a standard SaaS rule of thumb. CAC repayment in first 12 months is also a popular rule.




    $ 180

    Pay Per Signup

    If you want to pay advertisers for each signup.



    1Paying Customer


    20Signups

    Pay Per Click

    Here we've assumed that each click on your ad and resulting visit to your site, is from a unique visitor.



    1Paying Customer


    80Visits to your site

    $2.25

    Pay Per Impression

    Display advertising prices are usually quoted in CPMs - cost per mille aka cost per thousand. Don't ask us why 🙂



    1Paying Customer


    2667Impressions of your ad

    $67.50

    AD SPEND REPORT

    Get your ad-spend report as a self-hosted mini-site.