Max Profitable CPA Calculator
Before launching an ad campaign, this calculator answers the question that keeps you from losing money: how much can I pay at most to acquire a customer without the sale stopping being profitable? It's your product's profit before advertising is subtracted — the ceiling your cost per acquisition (CPA) shouldn't cross.
How is it calculated?
Max CPA = real revenue (price excluding VAT) − platform and gateway fees − product cost − shipping − packaging − other costs − expected cost of returns. In other words: whatever margin you have left before spending anything on advertising. If your real acquisition cost (what you actually pay per sale in ads) is lower than this max CPA, you make money; if it's higher, you lose money on every sale even if the campaign "works" in terms of conversions. Min ROAS is the sale price divided by the max CPA: the minimum revenue you need to generate per unit spent on advertising.
Examples
Product at 30, cost 10, platform fee 15% + gateway 1.5%
Max CPA: 5.19 (min ROAS: 5.78x).
Product at 60, cost 22, platform fee 12% + gateway 2%
Max CPA: 10.57 (min ROAS: 5.68x).
From margin to your acquisition cost ceiling
Max CPA is what's left from each sale before spending on advertising: if your real CPA is lower, you win; if it's higher, you lose. Its ROAS equivalent is the minimum profitable ROAS. For the full per-product margin, use real product profit, and to know how many sales you need, sales needed.