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Break-even CVR Calculator

Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.

When buying impressions, CVR is a major profit lever. If CVR is too low, even great CTR won't save economics at a given CPM.

This calculator computes break-even CVR at a given CPM and CTR, plus a target CVR with a profit buffer.

Prefer an explanation- Read the guide.
Related definitions:cvrcpmctraovcontribution marginbreak even cpm
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 targetsPaid ads measurement hub: ROAS, MER, marginal ROAS, and incrementality
 
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Used to estimate current ROAS and profit per 1,000 impressions.
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
3.13%
CPM
$12
CTR
1.5%
AOV
$80
Contribution margin
40%
Profit buffer
20%
Current CVR (optional)
2%

How to calculate

  1. Enter CPM and CTR to determine cost per click implied by impressions buying.
  2. Enter AOV and contribution margin to determine contribution per conversion.
  3. Compute required CVR for break-even and target buffer.

Formula

Break-even CVR = CPM / (1000xCTRxAOVxmargin); Target CVR = break-even / (1-buffer)
  • CTR and CVR are measured on a click basis (consistent denominators).
  • Margin reflects variable economics (contribution margin).
  • Best for one-time purchase economics; subscription needs LTV-based targets.

FAQ

If my CVR is below break-even, what can I do-
Increase CVR via landing page/offer improvements, increase AOV, improve margin, lower CPM, or improve CTR. If none are feasible, the placement may not be viable.
How does this relate to break-even CTR-
They're symmetric levers. Break-even CTR and CVR are both derived from the same underlying economics; improving either increases allowable CPM.

Common mistakes

  • Mixing click CVR with session CVR (denominator mismatch).
  • Using revenue margin instead of contribution margin (overstates economics).
  • Ignoring incremental lift at scale (retargeting bias).

Related calculators

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ROAS Calculator
Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
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Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
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Target ROAS Calculator
Estimate a target ROAS to cover variable costs plus a desired margin buffer.
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Paid Ads Funnel Calculator
Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
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ROI Calculator
Calculate Return on Investment (ROI) for a campaign or project.
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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).