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Tip: Use this calculator when planning paid media budgets, adjusting ROAS targets, or setting CAC goals.
Let’s say your Average Order Value (AOV) is ₹2,000 and you’re aiming for a ROAS of 4:
This means you must acquire each customer for ₹500 or less to maintain your desired return on ad spend (ROAS).
| Industry | Avg.. AOV (INR) | Target ROAS | Target CPA (approx.) |
| E-commerce | ₹2,000 | 4.0 | ₹500 |
| Online Education | ₹6,000 | 6.0 | ₹1,000 |
| SaaS B2B | ₹15,000 | 5.0 | ₹3,000 |
| Real Estate Leads | ₹50,000 | 10.0 | ₹5,000 |
These benchmarks vary based on LTV, margins, and sales cycle length.
| Term | Definition |
|---|---|
| ROAS (Return on Ad Spend) | The revenue generated for every rupee or dollar spent on advertising, expressed as a ratio or multiplier. |
| CPA (Cost Per Acquisition) | The average amount spent in advertising to acquire one paying customer or complete one conversion. |
| ROAS to CPA Conversion | The process of translating a revenue-based ROAS target into an equivalent cost-based CPA target for campaign bidding. |
| Average Order Value (AOV) | The average revenue generated per transaction, used as a key input when converting ROAS to CPA. |
| Bid Strategy | The automated or manual approach used to set bids in a paid campaign to achieve a specific performance target. |
| Target CPA | A Google Ads bid strategy where the system automatically sets bids to achieve a defined cost per acquisition. |
| Target ROAS | A Google Ads bid strategy where the system optimises bids to achieve a defined return on ad spend. |
| Conversion Value | The monetary value assigned to a completed conversion event used by ad platforms to optimise towards ROAS goals. |
| Profit Margin | The percentage of revenue remaining as profit after all costs, used to determine sustainable CPA and ROAS thresholds. |
| Breakeven CPA | The maximum cost per acquisition a business can afford before the campaign stops generating positive returns. |

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Answers to Frequently Asked Questions
It helps you determine your target cost per acquisition (CPA) based on your average order value and the desired return on ad spend (ROAS).
Target CPA = AOV ÷ Target ROAS.
It ensures your customer acquisition cost aligns with your revenue and profitability goals.
Yes. It works for any campaign where you track ROAS and order or conversion value.
It varies. E-commerce often targets 3–5, SaaS 5–8, while high-ticket services may need 8–10.
Use your e-commerce platform analytics or CRM data to find the average order value.
Yes. Recalculate whenever your AOV or ROAS goals shift due to new campaigns or pricing changes.