Facebook Ads Cost and Business Case Calculator
Facebook Ads Business Case Model
From media plan to profit-and-loss
Model a campaign the way a media buyer would before presenting it: impressions to clicks to customers, then CAC against lifetime value. Change any input and the case rebuilds instantly.
Media plan
Cost per 1,000 impressions.
$Share of impressions that click your ad.
%Share of clicks that become a lead or order.
%Set to 100% if the conversion above is already a purchase.
%Unit economics
The share of revenue left after cost of goods.
%Average repeat purchases per customer. Use 1 for one-time buyers.
Creative, landing page, management fees. Optional.
$Funnel
1.5% CTR ↓
2.7% conversion ↓
100% close rate ↓
Effective CPC
$0.80
CAC (true cost)
$30.00
ROAS
3.33x
First-purchase profit
$200.00
Customer LTV
$60.00
LTV : CAC
2.0x
LTV:CAC of 2.0x is below the commonly used 3:1 guideline. This campaign may cover its costs but leaves little room for margin, so improving conversion rate or repeat purchase rate matters more than cutting CPC here.
A planning model, not a guarantee of results. 3:1 LTV:CAC is a common general guideline, not a rule for every business.
Disclaimer: This is just a calculator; the actual ad cost will determine when you run Meta Ads