What's the highest cost per click you can afford? Enter your average sale value, profit margin, close rate and website conversion rate. We'll calculate your break-even cost per click and a safer target bid.
Add your average sale value and your profit margin on that sale.
Enter how many leads become customers, and how many clicks become leads.
See the cost per click where you break even, and a target that keeps a profit.
Every click has a value: the profit you make from a customer, multiplied by the chance that click becomes a customer.
Break-even CPC = average sale value × profit margin × close rate × conversion rate
For example: a RM1,500 sale at 40% margin is RM600 profit. If 20% of leads buy and 5% of clicks become leads, each click is worth RM600 × 20% × 5% = RM6. Pay more than RM6 per click and you lose money on average.
Max cost per lead = sale value × margin × close rate, in this example RM120. That's useful if you bid with Target CPA.
Break-even means zero profit. The "profit you want to keep" field lowers the target, so 30% keeps 30% of each click's value as profit. In practice, Google's average CPC is usually below your maximum bid, so this also leaves room for competition spikes.
That's why agencies that fix the landing page and lead handling can often outbid competitors and still make more profit.
Don't just cut bids. Cut the keywords and search terms that never convert, add negative keywords (try our negative keyword list builder), and improve conversion rate first.
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