How to use Break-Even CPC Calculator
- Enter Average Order Value (AOV) and adjust the options as needed.
- Run the tool and inspect its results, evidence and limitations.
- Copy or download the result, then verify it against the actual website, source data or business records.
Try a concrete example
An order value of 100, contribution of 40% and conversion of 2% yields theoretical CPC of 0.8.
How to interpret results
CPC = order value × pre-ad contribution rate × click-to-order conversion. Contribution should already deduct relevant product, fulfillment, fees, refunds and taxes. Fixed costs, repeat purchases and attribution need additional analysis.
Frequently asked questions
Can product gross margin be entered directly?
Matches this formula only when related fulfillment costs and fees have been deducted from the contribution margin.
Which conversion rate should be used?
Uses click-to-order conversion rate matched with the same channel and order scope.
Can I bid directly based on breakeven CPC?
It is an estimated boundary; leave profit margins and adjust using actual data.