Metrics
Breakeven
The point where ad spend equals gross profit produced.
Breakeven is the bid level above which you start losing money. Breakeven CPA = AOV × gross margin. Breakeven CPC = breakeven CPA × landing-page CVR. Breakeven ROAS = 1 / margin. Most operators run their tCPA targets 20–30% below breakeven to absorb model error and refund/chargeback risk.
Formula
Breakeven CPA = AOV × margin
Example
AOV $89, margin 55% → breakeven CPA $48.95. LP CVR 2.7% → breakeven CPC $1.32. Bid at $1.05 to leave 20% buffer for refunds and tracking loss.