Maximum affordable cost per click
Affordable CPC follows from the economics below the click: contribution is multiplied by click-to-lead and lead-to-sale conversion.
Maximum CPC = maximum CAC × lead-to-sale conversion × click-to-lead conversion. A cheap click is not affordable if too few visitors become customers.
What to consider
- Use conversion rates from the same channel and a comparable period.
- A change in either funnel conversion changes affordable CPC.
- A target CPC applies the chosen acquisition share to contribution before converting it through the funnel.
What stays the same across scenarios
- Sale economics are shared with the CAC calculation.
- The funnel uses explicit click-to-lead and lead-to-sale rates.
What changes or is assumed
- Conversion rates are your observed or estimated values; no market averages are inserted.
- The two conversion steps refer to the same funnel and audience.
Calculation steps
- Calculate contribution over the chosen horizon.
- Derive maximum CAC and pass it through both funnel conversion rates.
- Compare the resulting CPC with your observed click cost.
Build the calculation in a calculator
The example also carries: Taxes and fees: 0 (currency); Purchases per customer: 1 (count); Calculation horizon: first purchase (first purchase / full horizon); Contribution share for acquisition: 30 (%).
Illustrative example: Open the example: click-to-lead 10%, lead-to-sale 20%
Related material
Editorial team: MARKMA Editorial Team. Reviewed: .