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Break-Even CPC Calculator

Work out your maximum profitable CPC from margin, conversion rate and AOV, the bid you can never go above.

Google Ads Microsoft Ads Meta Ads

Average order value ($)Gross margin (%)Conversion rate (%)Target ROAS

Target ROAS = how many dollars of revenue you want per dollar of ad spend. Set above your break-even ROAS to lock in profit.

Break-even CPC (max profitable bid)

$0.96

Bid above this and you lose money on every click in the long run. Gross profit per order × conversion rate = max profitable CPC.

Target CPC for 4x ROAS

$0.53

Bid at or below this to hit your target ROAS. Revenue per click ÷ target ROAS.

Revenue per click

$2.13

AOV × CR

Gross profit per order

$38.25

AOV × margin

Break-even ROAS

2.22x

1 / margin

How to use: in Google Ads, set Target CPA / Target ROAS bidding to numbers derived from this — never let smart bidding drift above your break-even CPC.

About this tool

Before you set Smart Bidding targets or manual CPCs, know the cost-per-click you can actually afford. This shows your break-even CPC, target CPC for a desired ROAS, and what each variable change does to the ceiling.

When to use this

Before launching a new Shopping campaign, before switching from manual CPC to Smart Bidding, before raising Target ROAS targets — and every quarter to sanity-check that smart bidding hasn't drifted above your break-even.

The formula

Max profitable CPC = (AOV × Gross Margin %) × Conversion Rate. That's the dollar amount each click is worth in gross profit on average. Above that number, you lose money on every incremental click.