Maximum CPC calculator
Estimate a cost-per-click limit from customer value, conversion rate, and the time you can wait to recover acquisition costs.
Example numbers. Inputs stay in this tab and carry between these calculators.
Your inputs
Maximum average CPC
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- Allowed acquisition cost per payer
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- Other acquisition cost per payer
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- Available ad cost per payer
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- Contribution LTV
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- Lifetime budget limit
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- Payback budget limit
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- Click-to-paid rate
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- Lifetime break-even CPC
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From LTV to an advertising limit
The lifetime budget is contribution LTV multiplied by the share you allow for acquisition. The payback budget is expected contribution earned within your payback period, after the delay to first payment and capped at the forecast period. The smaller budget sets the acquisition limit.
Subtract other acquisition cost per payer from that limit. Maximum average CPC equals the remaining ad budget multiplied by click-to-paid conversion. For an app funnel, click-to-paid equals click-to-install multiplied by download-to-paid.
This is an estimate for average click cost, not a guaranteed profitable auction bid. Include creative, agency, and other acquisition costs per payer in your inputs. A platform's maximum bid can differ from its average CPC.
Leave room for overhead, refunds, uncertainty, and profit when setting the acquisition share. This model uses constant churn and conversion rates. It counts whole paid months after the entered delay. It does not model exact payment dates or annual prepayment cash flow. Review the LTV assumptions.
Example: from customer value to click cost
Use $10 monthly revenue, 15% fees, $1 monthly service cost, 5% monthly churn, and a 24-month forecast. Contribution LTV is about $106.20.
A 70% acquisition share permits $74.34. A six-month payback limit permits only $39.74, with no payment delay. The smaller budget applies.
With no other acquisition costs and a 2% click-to-paid rate, the maximum average CPC is $39.74 × 0.02 ≈ $0.79. This is a planning limit, not a guaranteed profitable bid.
Put the result to work
Read the ROAS guide for definitions and examples. Explore DataDad mobile attribution to connect this work to your reports.