PALLAS / CALCULATOR
Break-even CPA Calculator
Calculate the acquisition cost that consumes the full contribution available from an average order.
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INPUT
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Method & formula
Average order value is multiplied by contribution margin. The resulting contribution is the acquisition cost that would reduce contribution after acquisition to zero under this model.
- Break-even CPA = average order value x contribution margin
Example
An order value of 100 at a 40% contribution margin gives a break-even CPA of 40.
FAQ
Is this the same as an LTV-based CAC ceiling?
No. This tool uses order-level contribution. The LTV-based CAC ceiling uses customer lifetime economics and a target LTV-to-CAC ratio.
Is this a forecast?
No. It is deterministic planning arithmetic based on the assumptions you enter. Actual commercial performance can differ.