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Break-even CPA calculator

Find the highest cost per acquisition (CPA) you can pay on a single order and still break even, plus the matching break-even ROAS.

Your numbers

Average revenue per order, in USD.

Revenue minus cost of goods, as a percent of revenue.

Shipping, payment fees, packaging or returns you pay per order.

Results

Enter your numbers to see results. They update as you type.

What this calculator tells you

Every order leaves a certain amount of gross profit after the cost of the product and the costs of fulfilling it. That amount is the ceiling on what you can spend to win the order. Spend more and the sale loses money; spend less and you keep the difference.

Knowing this number turns bidding from guesswork into a rule. It is the figure to compare against the CPA in your ad account, and a sensible starting point for a target CPA or target ROAS bid strategy.

How it works

  1. Enter your average order value and gross margin. If you pay shipping, payment processing or other costs on each order that are not already in your margin, add them as other costs.
  2. The calculator works out the profit left on a typical order. That profit is your break-even CPA: the most you can pay in advertising to get one order without losing money.
  3. It also converts the result to a break-even ROAS, which is the number to use if you bid on ROAS instead of CPA.

The formula

Gross profit per order
Average order value × Gross margin
Break-even CPA
Gross profit per order − Other costs per order
Break-even ROAS
Average order value ÷ Break-even CPA

Worked example

Example figures for illustration, not benchmarks.

An online shop has an average order of $80.00 at a 50% gross margin, so each order carries $40.00 of gross profit. Shipping and payment fees add $8.00 per order, which leaves $32.00 as the break-even CPA. In ROAS terms that is $80.00 ÷ $32.00 = 2.50x. If campaigns acquire orders for less than $32.00, or return more than 2.50x, they are profitable on the first purchase.

Frequently asked questions

What is break-even CPA?

Break-even CPA is the cost per acquisition at which the profit from a sale exactly covers the ad spend used to get it. Below it, each conversion makes money; above it, each conversion loses money.

Should my target CPA equal my break-even CPA?

Usually not. Break-even is the ceiling, not the goal. Most advertisers set a target CPA below break-even so each order still leaves profit. If repeat purchases are common, some accept a CPA near or above break-even on the first order because the customer pays back later. That is a deliberate choice that needs good repeat purchase data.

What costs should I include in other costs?

Include costs you pay on every order that are not already in your gross margin: shipping you absorb, payment processing fees, packaging, marketplace fees, and an allowance for returns. Leave out fixed overhead such as rent and salaries, which do not change with each extra order.

How does break-even CPA relate to break-even ROAS?

They describe the same point in two ways. Break-even ROAS is the average order value divided by break-even CPA. Use CPA if you bid on conversions and ROAS if you bid on conversion value.

What if the calculator says there is no room for ad spend?

That means the costs you entered use up all of the gross profit on an order. Any advertising would lose money on the first purchase. Look at raising prices or order value with bundles, reducing fulfillment costs, or relying on repeat purchases before scaling paid ads.

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