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Channel Breakeven Calculator

For any acquisition channel — CAC vs LTV vs payback period. The channel-level decision math: scale, hold, or kill.
Payback period
10.8 mo
LTV
$2K
LTV : CAC
2.3x
Gross ARPA / month
$74
VerdictWorkable but needs monitoring. Improve targeting or reduce CAC before scaling.
When a channel is worth scaling
  • • Payback < 12 months (SMB) or < 18 months (mid-market)
  • • LTV:CAC ≥ 3
  • • You can spend 5x current and maintain the same numbers (otherwise scaling kills the channel)
  • • Attribution is clean enough to trust

What is the channel breakeven calculator?

Most companies have multiple acquisition channels (paid search, content, partnerships, outbound). Each has different economics. This calculator runs the breakeven math for one channel at a time so you can decide which to scale.

Why this matters for founders & operators

Scaling a channel before it's profitable burns cash without payoff. Killing a channel that's profitable but slow-paying also costs you. The right answer depends on the channel's specific math, not your overall company math.

How to use this calculator

  1. 1
    Use channel-specific CAC

    Fully loaded — ad spend + tooling + relevant labor for this channel only.

  2. 2
    Use blended ARPA across this channel's customers

    Customers from different channels often have different ARPAs.

  3. 3
    Test scaling assumption

    Channels rarely scale linearly. CAC at 10x current spend often doubles. Run the calc with assumed-degraded numbers to see breaking point.

FAQ

What's a healthy channel-level payback?+
Under 12 months for SMB; under 18 for mid-market. Above 24 months and you need to be very confident in retention.
Should every channel hit profitable breakeven?+
Eventually yes. Some channels (content, brand) take longer to attribute. Track over 6-12 month windows, not month to month.
How does this differ from CAC/LTV?+
CAC/LTV is company-wide. Channel breakeven is channel-specific. Same math, narrower scope. The difference matters for spend allocation.