Unit Economics & Ad Arbitrage Calculator

Ad Budget / Spend ($)

Total Clicks Received

Landing Page Conv. Rate (%)

Average Order Value / RPU ($)

Unit Economics Breakdown

Average CPC $0.20

Total Conversions 175

CPA / Blended CAC $5.71

Gross Revenue $7,875.00

Net Profit / Spread +$6,875.00

Blended ROAS / ROI 787.5%

Frequently Asked Questions

What is a healthy LTV to CAC ratio?

A benchmark LTV:CAC ratio is 3:1 or higher for sustainable subscription and digital products. Ratios below 1:1 indicate unprofitable customer acquisition.

How is Return on Ad Spend (ROAS) calculated?

ROAS is calculated as: (Total Revenue Generated from Ads / Total Ad Spend) × 100%. A ROAS of 300% means $3 revenue for every $1 spent on advertising.

What is traffic arbitrage in digital publishing?

Traffic arbitrage is the practice of purchasing paid visitors (via native, search, or social ads) at a lower Cost Per Click (CPC) than the Revenue Per Visit (RPV) generated on the destination pages.