How much can you afford to pay per client?
Enter what a client is worth and how you're currently performing. This works out your maximum allowable CPA, plus the leads, clicks and budget you need to hit a monthly client target - across three risk scenarios.
Your numbers
What you charge this type of client per month, on average.
How long a client typically stays before churning.
Share of leads that become paying clients.
Current or expected average cost per click.
Used to size the monthly plan below.
Maximum CPA by risk scenario
The most you should pay to acquire one client, at three different LTV : CAC safety margins.
Monthly plan
What it takes to land your target new clients each month, under the selected scenario.
How this is calculated
No black box - every number on this page follows from these five formulas.
- 1. Lifetime value
LTV = monthly client value × average retention (months)- 2. Maximum CPA
Max CPA = LTV ÷ target LTV:CAC ratio- the ratio is your safety margin. A lower ratio lets you spend more per client but leaves less room for error.- 3. Maximum cost per lead
Max cost/lead = Max CPA × close rate- 4. Clicks affordable per lead
Clicks/lead = Max cost/lead ÷ CPC- 5. Minimum required conversion rate
Min CVR = 1 ÷ clicks/lead- the lowest click-to-lead rate your landing page and targeting can run at before your real cost per lead breaks the cap above.
This tool models maximum allowable spend from the inputs you provide - it is a planning guide, not a guarantee of results. Real close rates, retention and CPC vary by channel, market and season; revisit these numbers regularly against actuals.