What is the break-even CPC in search arbitrage?
Break-even CPC is the most you can pay for a visitor without losing money. It equals your revenue per visit. If 1,000 visitors earn $150, revenue per visit is $0.15, so a click costing more than 15 cents loses money. Sensible buyers bid below that figure to leave room for deductions and overheads.
Start with RPV, then haircut it. Using the same illustration, if you expect 10% of revenue to be removed between estimated revenue and finalised revenue, real revenue per visit is $0.135. If you also want a 20% return, divide by 1.2: your target CPC is about $0.1125.
Break-even point moves constantly because RPV moves. A keyword that breaks even at 15 cents in November may break even at 10 cents in January. Many teams therefore set automation rules that pause or reduce bids when the trailing RPV drops below cost, and use a cost cap or Target ROAS on the traffic source to hold the line automatically.