Hookframe / Free tools / Break-even CPA calculator
Break-even CPA calculator: the most you can pay for one customer
Find the most you can pay in ads to win one customer before that first order loses money. Free, with the formula shown.
Your numbers
Example numbers. Replace them with yours.
Results
- Break-even CPA
- -
- Break-even ROAS
- -
- Gross profit per order
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- Max CPA for your target profit
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Key facts and break-even CPA by order value and margin
| Formulas | break-even CPA = AOV x gross margin · break-even ROAS = 1 / gross margin · max CPA for target profit = break-even CPA - target profit |
|---|---|
| What you enter | Average order value, gross margin %, and optionally a target profit per first order |
| What you get | Break-even CPA, break-even ROAS, gross profit per order, max CPA for your target, and a verdict |
| What it ignores | Repeat purchases, returns, and costs beyond the gross margin you enter |
| Example numbers | The starting values are examples, not benchmarks. Replace them with your own |
| AOV | 30% | 40% | 50% | 60% |
|---|---|---|---|---|
| $30 | $9 | $12 | $15 | $18 |
| $60 | $18 | $24 | $30 | $36 |
| $100 | $30 | $40 | $50 | $60 |
| $150 | $45 | $60 | $75 | $90 |
How it is calculated
Method: every result is plain arithmetic on the numbers you enter. Gross margin is read as a percent (55% is used as 0.55), no benchmark data is used, and the table above applies the same formula to round numbers.
- break-even CPA = AOV x gross margin %
- break-even ROAS = 1 / gross margin
- max CPA for target profit = break-even CPA - target profit per order
Gross margin is entered as a percent, so 55% is used as 0.55. Example: $60 AOV x 0.55 = $33.00 break-even CPA. This looks at the first order only. If customers buy again, you may be able to pay more, but that depends on your own repeat-purchase data.
If you want X, take Y
If you want turn your CPA ceiling into a ROAS target
Enter your spend, revenue and margin to see ROAS next to break-even ROAS.
If you want know what your creative really costs
Take the UGC ad cost calculator
Compare your all-in cost per creator video with Hookframe packages.
If you want more hooks to test to bring CPA down
Take Monthly Bundle, $1,200 per month
10 ads a month with 3 hooks each. We cannot promise a lower CPA, only more creative to test.
If you want a first low-cost test of the format
One finished ad of 8 to 20 seconds with 2 hook versions.
Keep going
- ROAS calculator to check actual ROAS against the break-even ROAS shown here.
- UGC ad cost calculator to see what your creative costs per video.
- All free tools to see the full set of calculators on one page.
- Hookframe packages for prices, turnaround and revisions.
- Hookframe FAQ for what we need from you and what the ads are.
- Terms of Service for refunds, revisions and usage rights.
- Privacy Policy for what data the site does and does not collect.
- The Hookframe reel to see the ad format.
Frequently asked questions
What is break-even CPA?
It is the most you can pay in ads to win one customer without losing money on their first order. The formula is average order value multiplied by gross margin.
Why use gross margin and not revenue?
Revenue includes what you spend making and shipping the product. Gross margin is what is left to pay for ads. A $60 order at a 55% margin leaves $33.00 for ads and profit.
What if customers buy more than once?
If many customers reorder, you may be able to pay more than this number to win them. This calculator looks at the first order only, so use your own repeat-purchase data to decide how much more.
What does target profit per first order do?
It subtracts the profit you want from break-even CPA. The result is the highest CPA that still leaves that profit on the first order. If it comes out negative, the target is higher than the margin on one order.
My CPA is above break-even. What now?
You have three levers: raise average order value, raise gross margin, or lower the cost of winning a customer. Testing more creative is one way to try the third. Hookframe sells ads for that, but we cannot promise a lower CPA.
Lower your cost per customer with more creative to test
Hookframe makes 9:16 UGC-style video ads from your product photos and a short brief, with 2+ hooks per ad to test. Packages start at $149 per ad.
Email hello@hookframeads.com