Calculators / Target CPA
Target CPA calculator
Enter your average order value and margin. You get the highest cost per sale you can afford, and a target CPA that keeps the profit you want.
Per order
The formulas
Break-even CPA = order value × gross margin
Target CPA = break-even CPA − profit you keep
Target ROAS = order value ÷ target CPA
Worked example
Orders average $60 and the gross margin before ads is 45%. You want at least $8 profit left on each order after paying for the ad.
| Gross profit | 60 × 0.45 = $27.00 |
|---|---|
| Break-even CPA | $27.00 |
| Target CPA | 27 − 8 = $19.00 |
| Target ROAS | 60 ÷ 19 = 3.16x |
So a campaign getting sales at $19 each is on target, one at$27 is working for nothing, and one at $32 is paying you to lose $5 an order.
Using it in an ad account
Start a little under the target
Platforms usually overshoot a new target CPA while they learn. Setting the first bid a bit below your number leaves room for that.
Recalculate when costs change
A supplier price rise or a new shipping rate changes your margin, and your target CPA moves with it. Rerun this whenever you rerun your margin.
Read more
Formula and examples last checked October 9, 2026.
Questions people ask
What is the difference between break-even CPA and target CPA?
Break-even CPA is the most you can pay for a sale and come out at zero. Target CPA is lower, because it keeps back the profit you want from each order. Ad platforms that bid to a target CPA will spend up to roughly that amount per conversion, so set it from the target, not the break-even figure.
Should I use average order value or the product price?
Average order value, if customers often buy more than one item. Your store reports it directly. If most orders are a single product, the product price works.
How does target CPA relate to target ROAS?
They describe the same goal in two ways. Target ROAS = average order value ÷ target CPA. Google and Meta let you bid on either, and this calculator gives you both so you can use whichever your campaign asks for.
Can I go above my break-even CPA?
Only on purpose: for example, if you know new customers reorder and you are happy to lose money on the first order to win the later ones. Check that with the customer acquisition cost calculator before you raise bids.
Other calculators
- ROAS calculator
Return on ad spend, and the ROAS you need to break even.
- Customer acquisition cost calculator
What each new customer actually cost you.
- Profit margin calculator
Cost and selling price in. Profit, margin and markup out.
- Shopify fees calculator
What Shopify and its payment processing take from one order.