What is break-even?

Break-even is the point where ads neither earn nor lose money.

For an e-shop, break-even cost per order equals order value times margin. For services, multiply also by close rate.

Knowing break-even before you start gives you a clear limit: the most one order or lead may cost.

Formula

Break-even CPA = order value x margin

Example

Order 50 EUR, margin 40 %. Break-even CPA is 20 EUR.

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