The most you can pay for a click
Every click is worth what the customers it produces are worth, multiplied by how often it produces one. Enter those and you get the bid ceiling above which advertising loses money.
Gross profit per customer
$235
Break-even cost per click
$3.53
Max CPC that keeps your profit
$2.47
Break-even cost per customer
$235
What this means
Bid no more than $2.47 a click. Typical Google search clicks cost $5.42 (WordStream / LocaliQ search advertising benchmarks), so search loses money at these numbers unless your conversion rate is higher than you have entered.
How it works
Gross profit per customer = price × margin × months they stay. Break-even CPC = that profit × your visitor-to-customer rate.
The maximum bid keeps back the share of profit you asked for. The comparison figure is the typical Google search cost per click from the benchmark this site cites everywhere, with its source named.