Break-even CPC Calculator
Compute the highest CPC you can pay without losing money on each sale. Enter AOV, gross margin, and conversion rate.
Inputs
Result
Category benchmarks
How it works
Break-even CPC is the highest click price you can pay before you start losing money on each order. It's derived from your AOV, the margin left after Quick Commerce commissions and fees, and your conversion rate from click to order. Any bid above this ceiling is unprofitable by definition.
When to use it
Set this as your absolute max bid in every campaign. If your category's typical CPC is above your break-even, you either need to fix conversion rate (listing, pricing) or accept you can't compete profitably on generic terms — focus on branded keywords instead.
Frequently Asked Questions
How is break-even CPC different from target CPC?▾
Break-even CPC is the ceiling — bid above it and you lose money on that click. Target CPC should sit below break-even, leaving margin for profit. Typically target = break-even × 0.7-0.8.
What gross margin should I use?▾
Use margin after all Quick Commerce fees (commission 12-22%, fulfillment ₹8-22/order, payment gateway 2%). For a Health & Nutrition SKU with 45% gross margin before fees, net margin after Quick Commerce drag is typically 25-30%.
My break-even CPC is lower than typical category CPC — what do I do?▾
Three options: (1) raise AOV with bundles and cart add-ons, (2) improve conversion rate through listing optimization, or (3) shift spend to branded keywords where your conversion rate is higher. Don't try to win generic keyword auctions when math is against you.
Related calculators
Enter ad spend and clicks to compute CPC. Benchmark against Quick Commerce category CPCs.
Enter ad spend and orders to compute CPA. Compare against your gross margin to know if you're profitable.
Enter revenue and ad spend to compute ROAS (Return on Ad Spend). Compare against Quick Commerce category benchmarks.
Deeper reading
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