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Growth Guides

Learn how to interpret ROAS, CAC, LTV, conversion rate, profit margin, and ad budget metrics — then use GrowthCalc tools to plan your next move.

Featured Growth Guides

Each guide explains what the metric means, how to judge your numbers, and what to improve next.

How to Know If Your ROAS Is Profitable

Learn how margin, CAC, and costs affect whether your ROAS actually supports profitable growth.

Key insight

A 3× ROAS can still lose money on thin margins. Compare ROAS to your break-even threshold before scaling spend.

Next step: Estimate break-even ROAS, then check if campaigns clear that bar after all costs.

CAC vs LTV: How to Read Acquisition Efficiency

Understand when acquisition cost is sustainable and how to compare CAC against customer value.

Key insight

CAC works when LTV covers it with margin left for operations. Many teams use 3:1 LTV:CAC as a planning benchmark.

Next step: Calculate CAC and LTV, then compare the ratio before scaling paid or outbound channels.

What Is a Good Conversion Rate?

Learn how conversion rate affects revenue, CAC, and paid growth efficiency.

Key insight

No universal “good” rate — context matters. Ask whether your rate supports target CPA at current traffic cost.

Next step: Benchmark by traffic source, then find the funnel step with the largest drop-off.

How to Plan Your Monthly Ad Budget

Estimate a safer ad budget range from revenue goals, target ROAS, and margin assumptions.

Key insight

Work backward from revenue targets. At 4× ROAS and a $40k goal, planning spend is roughly $10k per month.

Next step: Set a revenue goal and target ROAS, then derive a monthly budget range.

How Gross Margin Affects Paid Growth

See why low-margin businesses need higher ROAS before scaling paid acquisition.

Key insight

At 30% margin, you need roughly 3.3× ROAS to cover product cost alone — before overhead and platform fees.

Next step: Calculate true margin after fees and COGS, then set a minimum ROAS before scaling ads.

How to Run a 30-Day Growth Audit

Combine revenue, ad spend, conversion, margin, and customer value into a practical action plan.

Key insight

A growth audit connects acquisition, conversion, profit, and budget risk into one score with clear priorities.

Next step: Gather monthly metrics, then run a growth snapshot to prioritize the next 30 days.

Guides by Goal

Choose a goal to understand which metrics matter and why — before jumping into a calculator.

Improve ad performance

Diagnose whether paid channels are efficient before you scale spend.

  • ROASMeasure return on ad spend and compare it to your break-even threshold.
  • CPATrack cost per acquisition against customer value and margin.
  • Ad budgetSize monthly spend from revenue goals instead of gut feel.
  • Break-even ROASFind the minimum ROAS needed to cover product and fulfillment costs.

Understand customer economics

Decide whether acquisition spend is sustainable over the customer lifecycle.

  • CACTotal cost to acquire one customer across all channels.
  • LTVEstimated revenue or profit a customer generates over their relationship with you.
  • LTV:CACRatio that shows whether acquisition cost is justified by long-term value.
  • RetentionHow repeat purchases or renewals change the LTV picture over time.

Improve ecommerce profit

See whether product-level economics support paid growth and pricing decisions.

  • MarginGross margin after COGS — the foundation for ad and pricing decisions.
  • Shopify profitEstimate net profit after platform fees, shipping, and ad spend.
  • Product costHow unit economics change when COGS or supplier costs shift.
  • FeesMarketplace and payment fees that reduce effective margin per order.

Plan growth scenarios

Move from single-metric checks to an integrated growth plan.

  • Growth AuditCombine key metrics into a growth score with diagnosis and priorities.
  • Scenario PlannerCompare Current, Growth, and Aggressive outcomes side by side.
  • 30-day action planFocus checklist based on your top growth bottleneck.

Turn what you learn into a growth plan

After reading the guides, use the free Growth Audit tool to combine your metrics and generate a practical growth snapshot.

Frequently Asked Questions

Yes. All guides on GrowthCalc are free to read. Related calculators and the Growth Audit tool are also free — no sign-up or subscription required.