Break-Even CPC Calculator
Before you spend a cent on ads, you need to know the most you can pay for a click without losing money. That number comes from just two things: how often clickers buy, and how much each sale is worth.
Break-even cost per click
$0.80
At a 2% conversion rate and $40.00 per sale, you can pay up to $0.80 per click and still break even. Pay less than that to profit; pay more and you lose money on every visitor.
How it works
If 2 out of every 100 clicks turn into a sale (a 2% conversion rate) and each sale is worth $40 to you, then 100 clicks earn you $80. That means each click is worth $0.80 on average, so $0.80 is your break-even cost per click. Pay less and you profit; pay more and you lose money on every visitor.
This is the calculation most people skip before buying traffic. For the full picture, read how paid advertising actually makes money and revenue per click explained.