Free tool

LTV based ACOS calculator

How does purchase frequency affect my advertising cost of sale?
‍
How do I calculate the optimal ACOS considering customer lifetime value?

‍This easy-to-use lifetime value-based ACOS calculator helps e-commerce merchants, brands and agencies to quickly assess an optimal ACOS, taking into account not only the initial sale, but also repeat sales over time or purchase frequency.

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Free ACOS calculator based on repeat business

mimbi's advanced ACOS calculator is a comprehensive yet free tool designed to help e-commerce businesses with a high customer lifetime value (due to high purchase frequency) understand and optimise their advertising investment.

With just a few inputs like Average Order Value, Purchase Frequency, and Margin percentages, this user-friendly calculator provides instant insights into optimal advertising spending ranges.

From metrics like break-even ACOS to more advanced ones, the tool delivers clear visualizations, explanations, and actionable recommendations to transform your marketing decisions from guesswork to data-driven strategies.

Average Order Value ($): The average amount a customer spends per order

Average Purchase Frequency: How many times a customer purchases over their lifetime

Gross Margin (%): Profit percentage after cost of goods sold (COGS)

Desired Profit Margin (% of LTV): Target profit percentage from total LTV

Calculation Breakdown

Step 1: Total Revenue Calculation

Step 2: LTV Calculation

Step 3: ACOS Calculations

Final Results

Customer Lifetime Value (LTV): $0.00

Total profit expected from a customer over their lifetime

Allowable Customer Acquisition Cost (CAC): $0.00

Maximum amount you can spend to acquire a customer while maintaining profit goals

Breakeven ACOS: 0.00%

ACOS at which you break even on the initial sale

Maximum ACOS based on LTV: 0.00%

Maximum ACOS possible when considering customer lifetime value

Recommended Target ACOS Range:

0.00%

Optimal ACOS range balancing immediate profitability with long-term customer value

ACOS Visual Range

Breakeven (0%)

Target (0%)

Max (0%)

FAQs

Questions and answers about our free Customer Life Time value ACOS calculator

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Why such a calculator?

By calculating your ACOS according to LTV, you align your advertising strategy with the long-term value that customers bring to your business. This method enables you to make more informed decisions about how much you can afford to spend on acquiring new customers through Amazon PPC advertising as an example.
We made this free tool to allow anyone to quickly and easily calculate optimal bids according to LTV and margin.

How does it work?

Enter just 4 essential numbers to unlock powerful insights:
• Your average order value
• How many times customers purchase over their lifetime
• Your product's gross margin %
• Your target profit margin %

Watch as the calculator instantly:
• Breaks down your complete customer economics
• Visualizes your ideal ACOS ranges with clear charts
• Recommends optimal advertising spend targets based on your business model

What if I want to contribute?

If you would like to add new KPIs or suggest changes or corrections, please contact us!

What is mimbi's role in the retail media industry?

mimbi.io provides a retail media intelligence platform designed to help both brands and agencies better allocate their budgets and inform the next cycle of their advertising strategy. It provides data aggregation to bring together retail media networks, business data and teams in a transparent way.
More about our bids calculations for sponsored products .

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