Guides

CPA is a number you set. CAC is the number the business reports back. The gap has a size, and that size decides the target CPA you can afford.

The CTR formula is clicks over impressions. The useful part is what it does to your CPC, the rate your CPM requires, and the denominator that breaks it.

The CAC formula is simple. The denominator is where it breaks. How spend lag and organic customers move your CAC when nothing real has changed.

The CLV formula has four terms. Three move it in proportion, one bends it. Which input is worth fixing, and what the number can actually pay for.

Your LTV to CAC ratio is set by margin, churn and how hard you push spend. How to read it, and why a high ratio is usually a warning.

CPM and CPC are the same spend measured either side of the click. CTR is the exchange rate. The formula, the break-even, and where it misleads.

Reported CTR ranges by channel, why none of them says whether yours is good, and the division that gives the rate your own CPM and margin require.

Gross margin says you can pay $51.60 to win an order. Contribution margin says $36.12. The 18-point gap is where ad budgets quietly go.

What average CPM looks like by channel, what actually moves yours, and the formula for the highest CPM your funnel can pay before it stops.

A good conversion rate is the one that beats your cost per click divided by contribution per order. The formula, real benchmark ranges, and the traps.