Break-even is not a target. A business needs room for overhead, fulfilment risk, repeat sales variance, and profit. Use these outputs as the maximum theoretical ceiling, then set a safer target below it.
Why this calculation comes before campaign setup
If the market’s likely click cost is above your economic ceiling, better ad copy cannot fix the underlying maths. Improve the offer, margin, close rate, or landing-page conversion—or choose another channel.
Definitions
| Gross profit per customer | Customer revenue multiplied by gross margin. |
|---|---|
| Break-even cost per lead | Gross profit per customer multiplied by lead close rate. |
| Break-even cost per click | Break-even cost per lead multiplied by website conversion rate. |
Need the campaign and tracking built around these numbers? Review the Google Ads management packages.