Definition
Max CPC is the maximum cost per click you can pay while still meeting your unit economics target (break-even or with a profit buffer).
Example
If target CPA is $40 and click-based CVR is 2.5% (0.025), then max CPC = $40 * 0.025 = $1.00.
How to use it
- Compute max CPC from target CPA and click-to-conversion rate (CVR): max CPC = target CPA * CVR.
- Use contribution margin (not revenue) to avoid overstating allowable spend.
Common mistakes
- Mixing session-based CVR with click-based CPC (denominator mismatch).
- Using short-window attribution without validating incrementality at scale.
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 "Max CPC" 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., Max CPC Calculator) to sanity-check assumptions.
- Read the related guide (e.g., Max CPC and break-even CPC: how to set bidding targets from margin) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Max CPC Calculator: Compute break-even and target CPC (and optional CPM) from CVR, AOV, and contribution margin assumptions.
Guides
- Max CPC and break-even CPC: how to set bidding targets from margin: A practical guide to max CPC: translate AOV, CVR, and contribution margin into break-even CPC and a target CPC with buffer.
- 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.
- Paid ads bidding & budgeting hub: max CPC, target CPA, and break-even targets: A practical hub for bidding and budgeting: compute max CPC from CVR and margin, set target CPA using LTV, and use break-even CTR/CVR/CPM targets to guide creative and landing optimizations.