Enter your spend and conversions to get your cost per acquisition. Add a target CPA or the value of each conversion to see whether it pays.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How to calculate CPA
Divide your marketing spend by the number of conversions:
CPA = marketing spend รท conversions
A conversion might be a sale, a customer or a lead; when it is a lead, the figure is often called cost per lead. Include only the spend that produced those conversions, over the same time period.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Marketing spend | 3,000 |
| Conversions (customers, sales or leads) | 60 |
| Target CPA, optional | 45 |
| Value per conversion, optional | 110 |
| Result | Value |
|---|---|
| Cost per acquisition | 50 |
| Conversions per 100 spent | 2 |
| Target CPA | 45 |
| Over target by | 5 (11.1%) |
| Profit per conversion | 60 |
| Return on spend | 2.2x |
What is a good CPA?
A good CPA is one that leaves a profit. Compare it with the gross profit you make from each conversion, and with the lifetime value of a customer if people buy repeatedly. A CPA that is higher than the first order can still be fine if customers come back, as long as the lifetime value covers it with room to spare.
Tips and common mistakes
Set a target CPA from your margins, not from what competitors seem to pay. Work backwards from the profit available per conversion.
Track the same conversions across channels. If two channels both claim the same sale, the real CPA is higher than either report suggests.
Watch for delays. Some conversions take weeks, so a short window can make CPA look worse than it is.
Frequently asked questions
What is the difference between CPA and CAC?
CPA is the cost of any conversion, such as a lead or sale from a campaign. CAC is the full cost of winning a paying customer, including sales and other costs.
How do I lower my CPA?
Improve targeting, landing pages and offers, exclude audiences that do not convert and test creative. Raising conversion rate usually lowers CPA faster than cutting bids.
What is a target CPA?
The most you are willing to pay for a conversion, usually set from the profit it brings. Many ad platforms can bid automatically towards it.
How is CPA linked to CPC?
CPA equals CPC divided by conversion rate. A 1.25 CPC at a 3 per cent conversion rate gives a CPA of about 41.67.