Free Tool
Break-even Calculator
Calculate how many conversions you need to break even on your ad spend and find your maximum CPA.
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Understanding Break-even Analysis
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.
The Formulas
Profit Per Sale = AOV × Profit MarginBreak-even Conversions = Ad Spend / Profit Per SaleMaximum CPA = Profit Per SaleKey Concepts
Maximum CPA
The highest amount you can pay per conversion while still breaking even. Any CPA below this generates profit.
Target CPA
Set your target CPA at 50-70% of your maximum CPA to ensure profitability with a safety margin.
Tips for Achieving Break-even
- Improve conversion rate: Better landing pages = more conversions at same spend
- Increase AOV: Upsells and bundles improve profit per sale
- Reduce CPA: Better targeting and creative optimization
- Review profit margins: Consider pricing strategy adjustments