Max CPA calculator: the most a customer can cost
Your max CPA is what one customer leaves you before ads, minus the profit you want to keep. At a 45% margin on a $120 order, a customer can cost up to $54 in ads before the sale loses money. Count repeat orders if you are willing to wait for them.
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Exactly what this page computes
revenue per customer = average order value × orders per customer contribution = revenue × margin % breakeven CPA = contribution max CPA = contribution − revenue × profit % max cost per lead = max CPA × lead-to-customer %
How to read it
Which margin should I use?+
The contribution margin before ads: revenue minus product cost, shipping, payment fees and anything else each sale costs. The breakeven ROAS calculator works it out from those costs.
How many orders per customer should I count?+
Only the orders that arrive inside the time you can wait to earn the ad cost back. For a store paying ads from this month’s cash, that is often 1.
Is this the target CPA to give Google?+
It is the ceiling. A target set at the ceiling earns nothing on average, so set the target at or below the max CPA with your profit in it.
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