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Calculate how many conversions you need to break even on your ad spend and find your maximum CPA.
Your total monthly advertising budget
Average revenue per transaction
Your profit margin percentage after costs
Break-even analysis helps you determine the minimum number of sales needed to cover your advertising costs. This is critical for setting realistic campaign goals and evaluating performance.
Profit Per Sale = AOV × Profit MarginBreak-even Conversions = Ad Spend / Profit Per SaleMaximum CPA = Profit Per SaleThe highest amount you can pay per conversion while still breaking even. Any CPA below this generates profit.
Set your target CPA at 50-70% of your maximum CPA to ensure profitability with a safety margin.