What is a good CPA? It depends on your margin and order value
There is no universal good CPA. A $30 CPA is excellent for a $150 product with 40% margin and catastrophic for a $50 product with 20% margin.
Calculate my max CPACPA benchmarks by AOV and margin
| AOV | Gross margin | Max CPA | Target CPA (+25% ROI) |
|---|---|---|---|
| $30 | 30% | $9 | $7.20 |
| $60 | 35% | $21 | $16.80 |
| $100 | 40% | $40 | $32 |
| $150 | 45% | $67.50 | $54 |
| $200 | 50% | $100 | $80 |
Max CPA = AOV × Gross margin. Target CPA = Max CPA ÷ 1.25 for 25% ROI target. Always use AOV and margin excluding tax.
Important: CPA is not the ceiling, it is the floor
The max CPA is where you break even on ads. But you still have other costs: returns (5-15%), payment fees (2-3%), fulfillment overhead. Your actual profitable CPA needs to be meaningfully below the break-even CPA.