Free tools for D2C founders and marketing teams. The same calculator we use in our own client audits.
Run your discount strategy through a real P&L lens. See how your CAC, ROAS, and margins shift before you touch your campaigns — not after.
Get the Tool →Find out how many months it takes to earn back what you spend acquiring a customer, and the maximum CAC you can afford.
Get the Tool →See what's actually left after discounts, COGS, RTO, and ad spend, per order, and the max CAC you can afford.
Get the Tool →How do discounts actually affect CAC?
They lower what a customer pays, which can make ROAS look better, but they don't lower what you spent acquiring that customer. The real number to watch is contribution margin after the discount, not ROAS.
Why can a discount that improves ROAS still hurt profit?
ROAS only compares revenue to ad spend. A deeper discount can raise that ratio while shrinking the actual margin left on the order.
What discount depth is safe for a D2C brand?
It depends on starting gross margin and RTO rate, not a fixed percentage. Model your own numbers rather than borrowing someone else's rule of thumb.
How does RTO change the discount picture?
A discounted order that gets returned costs the acquisition spend and the discount with no revenue to offset either, which is easy to miss if RTO isn't in the model.
How does discounting connect to contribution margin?
Contribution margin is the number a discount actually eats into. The Discount & CAC Simulator and the Contribution Margin Calculator are built to close the same blind spot from two directions.
What is CAC payback period?
How long it takes for the contribution margin a customer generates to cover what it cost to acquire them, measured in months or orders. It's the number that tells you whether growth is compounding cash or tying it up.
How do you calculate CAC payback period?
Divide CAC by contribution margin per order, blended for repeat purchases in your measurement window and adjusted down for RTO.
What counts as a healthy CAC payback period for a D2C brand?
3 to 6 months is typical for fashion and lifestyle D2C. Under 3 months is best-in-class.
How does RTO affect CAC payback?
It lengthens payback for the whole cohort, since RTO orders cost the acquisition spend but return zero contribution margin.
Does repeat purchase rate change CAC payback?
Yes, significantly. A higher repeat rate inside your measurement window means more contribution margin arrives before the window closes, shortening payback.
Is contribution margin the same as gross margin?
No. Gross margin only subtracts COGS. Contribution margin subtracts every cost that scales with the order, COGS, shipping, gateway fees, and ad spend, which is why it's the number that actually tells you if a sale was worth acquiring.
Should RTO be included in contribution margin?
Yes, if you want the real number. A margin calculated only on delivered orders overstates profitability, since RTO orders still cost shipping and ad spend with zero revenue.
What counts as a healthy contribution margin?
10 to 20% is typical for fashion and lifestyle D2C. Below that, scaling ad spend usually scales revenue without scaling profit.
How is max affordable CAC calculated from this?
Max affordable CAC is your contribution margin before ad spend is subtracted, the ceiling on what you can spend to acquire an order and still break even on it.
Does a positive contribution margin mean the brand is profitable overall?
Not on its own. Contribution margin covers variable costs per order. The business still needs enough total contribution margin across all orders to cover fixed costs, salaries, rent, tools, before anything becomes real profit.
Every client audit we run starts with some version of these inputs. We made it shareable because the problem isn't unique to any one brand.
The reasoning