CPM Cost Calculator

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Max CPC and target CPA calculator

The most you can pay per click and per customer and still keep your target profit, worked out from your average order value, costs and conversion rate.

Your numbers

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Marketplace commission, returns allowance
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Share of revenue you want to keep
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For CAC; 1 if you don't count repeat orders
Contribution per order
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Break-even CPA
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Target CPA
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Max CAC (lifetime)
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Break-even CPC
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Max CPC for your target
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Ad Profit Planner (.xlsx), $19

Your break-even and target ROAS, target CPA, max CPC and lifetime CAC in one Excel workbook, plus a campaign tracker that flags every campaign losing money and a monthly budget plan.

$19Not available to buy online at the moment. What's in it

Need the margin first? Work it out with the free Shopify profit margin calculator.

Formulas

Break-even CPA = contribution per order Target CPA = AOV × (contribution margin − target profit %) Max CAC = target CPA × orders per customer Break-even CPC = break-even CPA × conversion rate Max CPC = target CPA × conversion rate

Worked example

With a $60 average order, $27.90 contribution per order (46.5%) and a 15% profit target, target CPA = $60 × (0.465 − 0.15) = $18.90. At a 2% conversion rate, max CPC = $18.90 × 0.02 = $0.38; the break-even CPC is $27.90 × 0.02 = $0.56. If customers order twice over their lifetime, you can spend up to $37.80 to win one.

Checking a campaign's return instead? Use the break-even ROAS calculator.

Questions

What is the maximum CPC I can afford?

Max CPC = target CPA × conversion rate. If each order can carry $18.90 of ad cost and 2% of clicks buy, you can pay up to $0.378 per click.

What is a target CPA?

The ad cost per order that still leaves your target profit. Target CPA = AOV × (contribution margin − target profit). Break-even CPA is the whole contribution per order.

How is CAC different from CPA?

CPA is the cost per order. CAC is the cost to win a customer, who may order more than once. Max CAC = target CPA × orders per customer over their lifetime.

What conversion rate should I use?

Your own, from your store or ads platform: orders divided by ad clicks over the last month or two. Small online shops often see 1% to 3%, but yours is what counts.