Model the three levers that drive your revenue, calculate how much you can afford to acquire a customer, and plan growth scenarios. Adjust any input and everything recalculates instantly.
Revenue Model
Every pound of revenue comes from three levers: how many customers return, how many new ones you acquire, and how much each one spends.
Allowable Acquisition Cost
Work backwards from your average order value to find the maximum you can spend to acquire a customer while hitting your margin target.
Min. first-order ROAS is the lowest return on ad spend your first order can deliver while the customer still hits your margin once repeat purchases are counted.
Take your currency, return rate, COGS, fulfilment and margin to the ROAS calculator: Check these costs against real ad results
Growth Scenario
Adjust the three levers to model a growth plan. Changes are measured against next year if nothing changes, so all-zero sliders give a delta of zero.
How this works
Three-lever revenue model: Every business generates revenue from the same three levers: how many customers return (loyalty rate), how many new customers you acquire, and how much each customer spends. This model lets you see which lever has the most impact on your specific numbers.
Allowable acquisition cost: This works backwards from your average order value, subtracting cancellations and returns, product costs, fulfilment costs, and your required margin to find the maximum you can spend on marketing per customer. The implied ROAS (return on ad spend) follows directly from this figure.
Extended payback: When toggled on, the calculation factors in expected repeat purchases over the payback period. A customer who orders again is worth more than their first transaction, so you can afford to spend more to acquire them. The model compounds the repeat rate annually. The minimum first-order ROAS is the order value divided by this larger allowable cost: the lowest return the first order alone can deliver once repeat purchases are counted.
Growth scenario: The three sliders let you model "what if" changes to each lever independently. Changes are measured against next year with no change, not against this year. The lever breakdown shows how much of the total change comes from each adjustment. The contributions will not sum to the total delta because the levers interact multiplicatively - the gap grows when multiple levers change together.
This is a simplified model. Real businesses have customer segments, seasonal variation, and non-linear cost structures. Use it to build intuition about where your growth leverage sits, not as a precise forecast.
