Marketing analytics
Break-even conversion rate.
Enter your cost per click, order value and gross margin. See the conversion rate that makes paid traffic break even or leave a target profit, and the CPC you can afford at your current rate.
Break-even conversion rate = CPC / (order value x gross margin). A $0.72 click on a $60 order at 40% margin needs 0.72 / 24 = 3%.
Your numbers
Result
Worked example
Each click costs $0.72 and the average order is $60 at a 40% margin, so gross profit per order is $24. Break-even conversion rate = 0.72 / 24 = 3%. For a 10% profit target, ads can use only 30% of revenue: 0.72 / (60 x 0.30) = 4%. If your page converts at 2%, the most you can pay per click is 24 x 0.02 = $0.48 to break even, or 18 x 0.02 = $0.36 for the target.
How it works
Break-even conversion rate = CPC / (order value x gross margin). The cost per order is CPC / conversion rate (conversion rate as defined by Google Ads: conversions per ad interaction), and it must not exceed the gross profit per order.
With a profit target t: CPC / (order value x (margin - t)). The target is a share of revenue and must be lower than the margin.
Max CPC at your rate = order value x margin x conversion rate.
Gross margin here is before ad spend and after product, shipping and payment costs. Repeat purchases and fixed costs are not included. Conversion rate must be measured on the same traffic you pay for.
Sources and basis (opened 2026-10-15): Conversion rate: Definition - Google Ads Help. Everything else is arithmetic on your inputs.
Inputs are user-entered figures. Results are planning estimates, not financial advice or a forecast of future performance. Everything runs in your browser. Nothing you type is sent or stored.
FAQ
How do I calculate the conversion rate I need to be profitable?
Divide your cost per click by the gross profit on an average order. If a click costs $0.72 and an order earns $24, you need 3% of clicks to buy.
What if the answer is over 100%?
A click costs more than a whole order earns, so no conversion rate works. Lower the CPC or raise order value or margin.
Does this include repeat purchases?
No. It judges the first order only. If customers reliably reorder, your real break-even rate is lower, but you need your own retention data to say by how much.
Where do I find my conversion rate?
In your analytics or ad platform: conversions divided by clicks or interactions for the traffic you are paying for.