Acquisition ceiling

Target CPA calculator

Enter average order value, gross margin, and target profit margin to calculate a target CPA ceiling and break-even CPA.

No CSVNo sign-upRuns in your browser
YOUR ASSUMPTIONSChange a number. The answer updates immediately.
CALCULATED ANSWER
Target CPA ceiling22,500
Break-even CPA30,000

Reserve the profit you need, then set the acquisition cost you can afford.

FORMULAAOV × (gross margin − target profit margin)
Simulate budget with target CPA
HOW TO READ IT

Use the answer as a decision boundary

Actual CPA below target

The target profit may be achievable.

Between target and break-even

It may avoid a loss but miss the profit target.

Above break-even

Each acquired order may create a negative advertising contribution.

FAQ

Questions before using this number

What is target profit margin based on?

It is the share of revenue you want to retain as profit and must be below gross margin.

Can this be used for a signup CPA?

You can use validated expected value per signup in place of AOV, but label forecasts as forecasts.