Calculate your break-even CPC
Frequently Asked Questions
What is Break-even CPC?
Break-even CPC (Cost Per Click) is the maximum amount you can afford to pay for a single click on your ad without losing money.
It’s calculated by multiplying your average order value (AOV) by your conversion rate (CR). This tells you the point where the revenue generated from conversions equals your advertising cost.
For example, if your average order value is £50 and your conversion rate is 5%, your break-even CPC would be:
£50 × 0.05 = £2.50
That means you can pay up to £2.50 per click and still break even. Paying less than that means you’ll make a profit, while paying more means you’ll likely lose money.
How do I use this tool?
Enter your Average Order Value (AOV)
- In the field labelled “Average Order Value (£)” type in how much revenue you make, on average, from a completed sale (e.g. £50).
- This number should reflect what a customer typically pays after all costs (or as you define in your business model).
Enter your Conversion Rate (%)
- In the field labelled “Conversion Rate (%)” enter your percentage of clicks that become sales (e.g. 5).
- Do not convert this into a decimal — the tool expects a percentage input (i.e., entering “5” means 5%).
Click “Calculate”