Marketing Calculators
From ROAS and CAC to email open rates and A/B test significance — our free marketing calculators help you measure what matters and make better decisions with your budget.
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ROAS, CPL, CPC, CPA, and ad budget calculators
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A/B testing, conversion rates, and audience growth
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Marketing Glossary — Key Terms Explained
- ROAS
- Return on Ad Spend = Revenue ÷ Ad Spend. A 4× ROAS means £4 revenue per £1 spent on ads. Target ROAS depends on gross margin. Break-even ROAS = 1 ÷ Gross Margin (e.g., 40% margin requires 2.5× ROAS to break even).
- CAC (Customer Acquisition Cost)
- Total sales and marketing spend ÷ New customers acquired in the same period. Includes all costs: ad spend, agency fees, salaries. Target: CAC should be recovered within 12 months (CAC payback period).
- CPL (Cost Per Lead)
- Total ad spend ÷ Number of leads generated. Different from CPA (Cost Per Acquisition) — a lead isn't a customer yet. Close rate × CPL = effective cost per customer.
- Statistical Significance
- In A/B testing, the probability that the observed difference between variants is real and not due to random chance. 95% significance (p < 0.05) is the standard threshold before calling a winner.
- LTV:CAC Ratio
- Lifetime Value divided by Customer Acquisition Cost. A ratio ≥ 3:1 is generally considered healthy. Below 1:1 means acquiring customers at a loss. Used to assess marketing efficiency and growth sustainability.
Frequently Asked Questions
What is a good ROAS for Facebook / Google ads?
Depends on your margins. A 4× ROAS is often cited as a starting target for ecommerce, but if your gross margin is 60%, you can sustain 2× ROAS profitably. If margin is 20%, you need 5× ROAS. Calculate your break-even ROAS first: 1 ÷ Gross Margin %. Everything above that is profit.
How do I know if my A/B test is statistically significant?
Statistical significance means the probability the result is due to chance is low enough to trust. The standard threshold is 95% confidence (p-value < 0.05). You also need sufficient sample size — small samples can show large swings that don't reflect real user behaviour. Run the A/B test calculator before calling a winner.
What is the difference between CPC, CPM, and CPA?
CPC (Cost Per Click): you pay each time someone clicks. CPM (Cost Per Thousand Impressions): you pay for every 1,000 times your ad is shown. CPA (Cost Per Acquisition): you pay when a defined action (purchase, signup) occurs. Google/Meta support all three bidding strategies.
How much should I spend on marketing?
Common benchmarks: B2C ecommerce: 10–20% of revenue. B2B SaaS: 15–25% of revenue. Established brands with strong margins: 5–10%. Growth-stage startups often spend 30–50%+ of revenue on marketing. The right number is the highest spend where incremental revenue exceeds incremental cost — use CAC and LTV to calibrate.