Definition
Break-even CPM is the maximum cost per 1,000 impressions you can pay while still breaking even on variable economics at your CTR, CVR, and contribution margin.
How to use it
- Break-even CPM increases with CTR, CVR, AOV, and margin.
- Use a buffer; break-even is fragile under noise and attribution error.
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "Break-even CPM" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Break-even CPM Calculator) to sanity-check assumptions.
- Read the related guide (e.g., Break-even CPM: how to price impressions from CTR, CVR, and margin) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Break-even CPM Calculator: Compute break-even and target CPM from CTR, CVR, AOV, and contribution margin assumptions.
- Break-even CTR Calculator: Compute the CTR required to break even (and hit a target) given CPM, CVR, AOV, and contribution margin.
- Break-even CVR Calculator: Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.
Guides
- Break-even CPM: how to price impressions from CTR, CVR, and margin: A practical guide to break-even CPM: translate CTR, CVR, AOV, and contribution margin into a max CPM and a target CPM with buffer.
- Break-even CTR: required CTR at a given CPM (with buffer): A practical guide to break-even CTR: set creative CTR targets from CPM, CVR, AOV, and margin, then use them to diagnose pre-click performance.
- Break-even CVR: required conversion rate at a given CPM and CTR: A practical guide to break-even CVR: set landing page CVR targets from CPM, CTR, AOV, and margin, then prioritize post-click fixes.