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Try “burger”, “cash flow”, “Costco” or “markup”.

Calculators

Customer cost and payback calculator

See what winning a customer costs you, how many months of their buying earn it back, and what they're worth if they stay.

Example numbers, made up: The starting numbers are a made-up small shop, not real figures.

Ads, first-order discounts, free samples: what you paid to win new customers over a stretch of time, like a month.

Over the same stretch of time.

On average. If they buy every few months, spread it out: a $60 order every 3 months is $20 a month.

Your margin on what they buy, after the product, packing, shipping and fees.

How long they keep buying, on average. Leave it blank to skip.

Example numbers

Cost to win a customer

$50.00

$2,000 of marketing for 40 new customers. Owners call it the customer acquisition cost.

Pays back in

5 months

Each customer leaves $10.00 a month after what they buy costs you. It takes until month 5 to earn back the $50.00, so their first month of buying doesn't cover it.

Lifetime value, over 8 months

$80.00

What a customer leaves you while they stay. After the $50.00 to win them, that's $30.00 each.

How it's worked out

Cost to win a customer = marketing spend ÷ new customers. → $2,000 ÷ 40 = $50.00

Left a month = what a customer spends a month × the share left. → $25.00 × 40% = $10.00

Payback = cost to win a customer ÷ what's left a month, in months. → $50.00 ÷ $10.00 = 5 months

Lifetime value = what's left a month × months they stay. → $10.00 × 8 = $80.00

Learn the idea behind it

  • Lesson

    What does a customer cost?(members-only)(included in your membership)

    Follow a shop's ads from click to customer, see why a first order may not pay for winning a buyer, and decide whether an ad pays.

    Take the lesson

The numbers you type stay on this page and aren't sent anywhere. For learning, not financial advice.