Break-even CTR Calculator
Compute the CTR required to break even (and hit a target) given CPM, CVR, AOV, and contribution margin.
When buying impressions, CTR is a key lever: it determines how many clicks you generate per 1,000 impressions and therefore how many conversions you can drive at a given CVR.
This calculator computes the break-even CTR required for a given CPM, and a target CTR that includes a profit buffer.
Prefer an explanation- Read the guide.
Break-even CTR: required CTR at a given CPM (with buffer)Break-even CVR: required conversion rate at a given CPM and CTRPaid ads bidding & budgeting hub: max CPC, target CPA, and break-even targetsCreative + landing page playbook: diagnose CTR/CVR, then set break-even targets
$
%
$
%
%
Used to estimate current ROAS and profit per 1,000 impressions.
%
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
1.88%
- CPM
- $12
- CVR (click -> conversion)
- 2.5%
- AOV
- $80
- Contribution margin
- 40%
- Profit buffer
- 20%
- Current CTR (optional)
- 1.2%
How to calculate
- Enter CPM, CVR, AOV, and contribution margin.
- Compute break-even CTR and add a buffer to get target CTR.
- Use this to sanity-check creative/placement performance targets.
Formula
Break-even CTR = CPM / (1000xCVRxAOVxmargin); Target CTR = break-even / (1 - buffer)
- CVR is click-based (conversions / clicks).
- Margin reflects variable economics (contribution margin).
- Ignores long-term LTV; best for one-time purchase economics.
FAQ
Why does required CTR increase when margin is lower-
Lower margin means less contribution per conversion. To cover the same CPM, you need more conversions per 1,000 impressions, which requires higher CTR (or higher CVR).
Should I use this for subscription products-
Use it as a first-order sanity check, but subscription businesses should typically use LTV-based targets (because value is not captured in a single purchase AOV).
Common mistakes
- Mixing click CVR with session CVR (denominator mismatch).
- Using revenue instead of contribution margin economics.
- Ignoring incrementality at scale (CTR and CVR can be inflated by retargeting).
Related calculators
Paid Ads
ROAS Calculator
Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
Paid Ads
Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
Paid Ads
Target ROAS Calculator
Estimate a target ROAS to cover variable costs plus a desired margin buffer.
Paid Ads
Paid Ads Funnel Calculator
Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
Paid Ads
ROI Calculator
Calculate Return on Investment (ROI) for a campaign or project.
Paid Ads
Incrementality Lift Calculator
Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
Quick checks
- Keep attribution model and window consistent when comparing campaigns.
- Pair efficiency metrics (ROAS/CPA) with profit assumptions (margin, refunds, fees).
- Validate tracking after site changes (pixels/events can silently break).