How to calculate CPA
- Enter your ad spend and the numbers your ad platform reports: impressions, clicks, conversions and revenue. You only need the ones used in the CPA formula, but adding the rest fills in every other metric too.
- The CPA card is highlighted at the top, with the formula's inputs underneath.
- Add your gross margin to see whether the campaign is actually profitable after ad costs, and use the planner to estimate the budget for a target.
What CPA means
CPA, cost per acquisition (also cost per action, cost per lead or cost per sale), is what you pay in advertising for each conversion: a purchase, a sign-up, a lead or a booking. The formula is CPA = ad spend ÷ conversions. Spend 1,500 to get 90 sales and the CPA is 16.67. CPA combines what you pay for traffic and how well your page converts: CPA = CPC ÷ conversion rate, so halving CPC or doubling conversion rate both halve CPA.
The CPA you can afford depends on what a customer is worth. For one-off purchases compare it with profit per order; for subscriptions and repeat customers compare it with customer lifetime value, which often justifies a higher CPA. Compare a metric with your own past campaigns before comparing it with industry averages, which vary enormously by platform, country, season and audience. Every calculation happens in your browser; your campaign data is not uploaded.
FAQ
What is a good CPA?
One that is comfortably below the profit, or lifetime value, a new customer brings.
How do I reduce CPA?
Lower CPC with better targeting and creative, and raise conversion rate with a clearer, faster landing page.
Is CPA the same as CAC?
Similar. CPA usually covers ad spend for one campaign; CAC includes all sales and marketing costs.