Marketing analytics
Break-even CPM, CPC and CPA.
Start from the profit on an order and work back up the funnel. See the most you can pay per order, per click and per thousand impressions on Facebook, Meta, Google or any paid channel.
Max CPA = order value x margin. Max CPC = max CPA x conversion rate. Max CPM = max CPC x CTR x 10. A $60 order at 40% margin allows a $24 CPA, $0.72 CPC at 3% conversion and an $8.64 CPM at 1.2% CTR.
Your numbers
Result
Worked example
A $60 order at a 40% gross margin leaves $24, so the maximum CPA is $24 at break-even. If 3% of clicks buy, you can pay $24 x 0.03 = $0.72 per click. If 1.2% of impressions get clicked, 1,000 impressions bring 12 clicks, so the maximum CPM is $0.72 x 12 = $8.64. Check: 12 clicks x 3% = 0.36 orders x $24 = $8.64. With a 10% profit target the ceilings drop to $18, $0.54 and $6.48.
How it works
Max CPA = order value x (margin - target profit). This is the most you can spend to win one order and still meet the target. Google Ads defines CPA as the average amount charged for a conversion.
Max CPC = max CPA x conversion rate. CPA = CPC / conversion rate, so rearranging gives the ceiling for each click.
Max CPM = max CPC x CTR (in percent) x 10. CPM is the cost of 1,000 impressions and CTR is clicks per impression, so 1,000 impressions bring 10 x CTR clicks.
Compare these ceilings with the CPM, CPC and CPA your ad account actually reports. If real costs sit above them, ads lose money on the first order. This is arithmetic on your inputs and not a benchmark for any platform. Repeat purchases and fixed costs are not included.
Sources and basis (opened 2026-10-15): Average CPA: Definition - Google Ads Help; 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 break-even CPA for Facebook ads?
Multiply your average order value by your gross margin. That is the most you can pay to win an order at break-even.
How do I turn break-even CPA into a break-even CPM?
Multiply by conversion rate to get the maximum CPC, then by CTR and 10 to get the maximum CPM.
Does this only work for Facebook?
No. The maths is the same for Meta, Google, TikTok or any channel that reports CPM, CPC, CTR and conversions.
What if my real CPM is above the ceiling?
Improve CTR or conversion rate, raise order value or margin, or accept a first-order loss that you expect to recover from repeat purchases. Use your own retention data for that judgement.