PPC Calculators

Daily budget = (target conversions × cost per conversion) ÷ working days per month. This spreads monthly conversion goals evenly across active campaign days.

Lower target conversions, increase expected CPA, or extend working days in the calculation. If the math still exceeds your cap, reduce goals or increase the monthly budget.

Yes — Google Ads may spend up to 2× your daily budget on a given day but will not exceed your monthly budget cap (daily budget × 30.4). Meta Ads, TikTok Ads, and LinkedIn Ads use different pacing rules, so verify limits in each platform.

ROAS is return on ad spend — revenue divided by ad spend. A ROAS of 4 means $4 in revenue for every $1 spent on ads.

A good ROAS depends on your margin — the lower your product margin, the higher ROAS you need to stay profitable. For example, at a 30% margin, the minimum acceptable ROAS is around 3.3, and anything above that is profit. To calculate the exact minimum for your product, use the Break-even ROAS calculator.

ROAS compares total revenue to ad spend. ROI compares net profit to ad spend as a percentage. ROAS can look healthy while ROI is negative if margins are thin.

ROAS below 1 means revenue is less than ad spend — the campaign is unprofitable on revenue alone. Cut spend, improve conversion rate or margins, or pause until unit economics improve.

LTV (lifetime value) is the total gross profit a customer generates over a period. CAC (customer acquisition cost) is what you spend to acquire one new customer. LTV:CAC compares long-term value to acquisition cost.

LTV:CAC below 1:1 is unprofitable — a customer costs more than they return. Ratios from 1:1 to 3:1 are acceptable, but the margin is too thin for confident scaling. From 3:1 the ratio is generally considered healthy and leaves room to invest in growth.

Break-even CPC is the maximum bid per click at which a campaign breaks even with zero profit and zero loss. It is derived from average order value, profit margin, and site conversion rate.

Break-even CPC = average order value × (margin / 100) × (conversion rate / 100). For example, with a $100 order, 30% margin, and 2% conversion, the maximum CPC is $0.60.

Actual CPC often exceeds break-even because auction competition raises bids, automated bidding optimizes for conversions rather than your margin, or the conversion rate in your calculation was too optimistic. Review query and placement reports, creative quality, and whether margin inputs include all costs.

Recalculate break-even CPC at least monthly for active campaigns and immediately after price, margin, or conversion rate changes. Seasonal conversion shifts also require an update.

Break-even CPC is the maximum bid per click used in planning before launch. Target or maximum CPA is the highest conversion cost the gross profit on an order can absorb, less the profit share you want to keep. Conversion rate links the two ceilings: CPA ≈ CPC ÷ conversion rate.

Target CPA is the maximum cost per conversion you can afford while keeping the profit share you want. It is calculated from gross profit: CPA = average order value × margin × (1 − profit share). At a $100 order value and a 30% margin, break-even CPA is $30; if you want to keep 20% of the profit, it drops to $24. This sets a financial ceiling for automated bidding on any ad platform.

A target CPA gives automated bidding a conversion-cost goal — for example, Target CPA in Google Ads or Cost Cap in Meta Ads. Setting it above break-even wastes budget; setting it too low limits volume and learning.

CPA is cost per conversion (spend ÷ conversions). Break-even CPC is the maximum bid per click calculated from margin and conversion rate. The two ceilings share the same margin: break-even CPA = order value × margin, and break-even CPC = that CPA × conversion rate. CPA reflects actual performance; break-even CPC sets the bid limit in planning.

Advertising ROI here is return expressed as a percentage: ((revenue − total costs) ÷ total costs) × 100, where total costs include ad spend and additional costs (when provided). It compares attributed revenue to full campaign costs — not product cost of goods, so it is not the same as net profit.

Any positive ROI means attributed revenue exceeded total campaign costs on this formula. Target ROI still depends on margin — compare against break-even ROAS and net profit after product costs, not ROI alone.

Net profit per unit subtracts product cost, shipping, marketplace commission (as a % of price), and ad spend per unit from the selling price.

Commission reduces net margin before ad costs — a 15% marketplace fee on a thin-margin product can make paid traffic unprofitable even at a good ROAS. Always include commission in margin calculations.

Statistical significance means the observed conversion rate difference is unlikely due to random chance alone. At 95% confidence, there is a 5% or lower probability the difference is random.

Reliable results typically require hundreds to thousands of conversions per variant, depending on baseline conversion rate and the size of difference you want to detect. Small CR differences need larger samples.

No significant difference means you cannot confidently say one variant is better — continue the test with more traffic, accept a tie, or test a more distinct change rather than declaring a winner prematurely.

Regular ROAS compares revenue to ad spend. Break-even ROAS is the minimum ROAS required for profitability given your product margin — ROAS can exceed 1.0 and still be unprofitable if margin is low.

Break-even ROAS = 1 ÷ (margin as a decimal). A 25% margin requires ROAS of 4.0 to break even; a 50% margin requires only 2.0.

Break-even ROAS applies to ad campaign revenue vs. spend. Break-even ROI here covers the whole business — fixed costs, variable costs, and ad budget — and shows units and revenue needed for total break-even.

Fixed costs include rent, salaries, software subscriptions, insurance, and other expenses that do not change with sales volume in the short term.

Demand and conversion rates vary by season — concentrating spend in peak months and reducing it in slow periods improves overall ROAS and prevents wasted budget when demand is low.

Use historical conversion or revenue data by month from analytics, or start with an industry preset and adjust coefficients based on your own year-over-year performance.