Max Ad Spend Calculator
Calculation Results
Max Acceptable CAC
0
Break-Even CAC
0
Customer LTV (rev × margin × repeat)
0
Profit per Customer
0
Profit per First Order
0
How much can you spend to acquire a customer? The honest answer depends on net margin (not AOV) and how often that customer comes back. This calculator sets the ceiling for your ad bid strategy — anything above this, and every new customer costs you money.
$8.40
Median max CAC (breakeven)
$2.80
Median 3:1 CAC
1.8
Avg orders/yr per customer
58%
Sellers acquiring above max CAC
The formula
Formula
Max CAC = (AOV × orders/year × net margin%) ÷ target ratio
Worked example
| Line item | Amount |
|---|---|
| Average order value (AOV) | $28 |
| Orders per customer / year | 1.8 |
| Net margin | 15% |
| Customer LTV | $7.56 ($28 × 1.8 × 0.15) |
| Break-even CAC (1:1) | $7.56 |
| Max CAC (3:1 target) | $2.52 |
Benchmarks
| Category | Median LTV | Max CAC (3:1) |
|---|---|---|
| Beauty & skincare | $24.30 | $8.10 |
| Health & wellness | $34.65 | $11.55 |
| Food & beverage | $10.40 | $3.47 |
| Fashion | $9.35 | $3.12 |
| Electronics | $5.95 | $1.98 |
| Home & kitchen | $18.14 | $6.05 |
Source: anonymized data from 1,200+ Dashboardly-connected TikTok Shops, Jan–Dec 2025.
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