Every core marketing metric, explained
| Metric | Formula |
|---|---|
| ROAS | Revenue ÷ Ad spend |
| CPA | Ad spend ÷ Conversions |
| CPM | Ad spend ÷ Impressions × 1,000 |
| CTR | Clicks ÷ Impressions × 100 |
| CAC | Sales & marketing cost ÷ New customers |
| LTV:CAC | Customer lifetime value ÷ CAC |
Frequently asked questions
What is a good ROAS?
It depends on your margin. Your break-even ROAS is 1 ÷ margin; at a 40% margin you need at least 2.5× to break even.
What is a healthy LTV:CAC ratio?
A common SaaS benchmark is 3:1 or higher, with CAC paid back within 12 months.