Utility Empire — Finance

Ad Spend ROAS & Break-Even CAC

Measure how efficiently ad spend turns into revenue, then derive your break-even and affordable customer acquisition cost from gross margin per sale and conversion rate.

Ad Spend
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Ad Revenue
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ROAS
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Gross Margin / Sale
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Break-Even CAC
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Ad Spend Inputs

Enter what you spend on ads and what they return.

$
Total amount spent on advertising across the period.
$
Total revenue directly attributable to the ad spend.
Used to compute revenue per sale for the break-even CAC.

Sale Economics

Per-unit economics that drive break-even customer acquisition cost.

$
Average revenue from one sale. Leave blank to auto-fill from revenue & units.
%
Percentage of each sale kept after direct cost of goods.
%
% of visitors who convert to a customer. Used for the affordable-CAC figure.
ROAS = Revenue from Ads ÷ Ad Spend
Break-Even CAC = Revenue per Sale × Gross Margin %
Affordable CAC = Revenue per Sale × Gross Margin % × Conversion Rate

This tool is distinct from SaaS LTV:CAC — it focuses on a single-sale transaction where the customer is acquired and its value largely realized on the first purchase.

Ad Spend

Total advertising investment for the period. This is the denominator of your ROAS — the lower you can hold it while keeping revenue steady, the healthier your return looks.

Ad Revenue

Revenue credited to the advertising channel. Only attribute revenue that your tracking can actually tie to the spend, otherwise ROAS will look better than reality.

ROAS

Return on Ad Spend — every dollar you put into ads returns this much revenue. ROAS of 1.0 means you got your money back before costs; you generally need above 1.0 to be profitable after product cost.

Gross Margin per Sale

The profit retained on a single sale after direct cost of goods. This is the ceiling for how much you can spend on acquiring one customer before you lose money on the first purchase.

Break-Even CAC

The maximum you can pay to acquire one customer before that first sale becomes unprofitable. Anything above this number erodes the margin of the first purchase.