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What can you actually afford to pay for a customer?

Most brands do not know their break-even cost per purchase. Which means they cannot tell whether their ads are working, only whether the number in the dashboard looks nice. Put your figures in below.

Your numbers

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What it means
You keep, per order, before ads
Break-even cost per purchase
Break-even return on ad spend
Orders a month at that spend
Revenue
Profit after ad spend
Your current return on ad spend

The number that matters is the last one.

Return on ad spend tells you nothing on its own. A 2x return is excellent on a 70% margin and a slow bleed on a 35% one. Break-even cost per purchase is the number to manage to, and most accounts we open have never had it written down.

If the figure above is uncomfortable, that is usually a pricing or offer problem rather than an advertising one — and it is the first thing we would talk about.

Send us your numbers