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.

Your numbers

$
%
After product, fees, packaging and shipping.
$

Per order

Gross profit per order
Break-even CPA
Target CPA
Break-even ROAS
Target ROAS

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 profit60 × 0.45 = $27.00
Break-even CPA$27.00
Target CPA27 − 8 = $19.00
Target ROAS60 ÷ 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.

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