HOW IT CALCULATES
Your margin and conversion rate set the ceiling
The arithmetic is deliberately simple so you can check it.
- Margin per sale = sale value × margin. For an enquiry goal it is multiplied by the share of enquiries you win, which gives the value of one enquiry.
- Break-even cost per result equals that margin: pay more per result and the channel loses money before our fee.
- Break-even cost per click = margin per result × your site's conversion rate. This is the figure to compare the first weeks against.
- Conversions and clicks needed a month follow from the monthly budget. Headroom compares the break-even cost per click with what you pay elsewhere.
