Cost per acquisition tells you how much you pay in advertising for each customer, lead or sale. A campaign is profitable when the CPA is lower than the profit a customer brings, ideally a third or less of their lifetime value.
How to use the CPA Calculator: Cost per Acquisition
- Number of clicks
- Average cost per click (CPC)
- Attributed conversions
- Profit per conversion
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the number of clicks, the average cost per click and the conversions attributed to the campaign.
Inputs explained
| Field | What to enter |
|---|---|
| Number of clicks | A number |
| Average cost per click (CPC) | Amount in your currency |
| Attributed conversions | A number |
| Profit per conversion | Amount in your currency |
What each result means
- Total ad spend = [Number of clicks]×[Average cost per click (CPC)]
- Cost per acquisition (CPA) = [Total ad spend]÷max([Attributed conversions], 0.000001)
- Conversion rate = [Attributed conversions]÷[Number of clicks]×100
- Campaign profit after ad spend = [Attributed conversions]×[Profit per conversion] – [Total ad spend]
Example values
How the main result changes when Number of clicks changes and everything else stays at the example values above:
| Number of clicks | Cost per acquisition (CPA) |
|---|---|
| 2,000 | 17.71 |
| 3,000 | 26.56 |
| 4,000 | 35.42 |
| 5,000 | 44.27 |
| 6,000 | 53.13 |
| 8,000 | 70.83 |
Formula
Total ad spend = clicks × CPC
CPA = ad spend ÷ conversions
Conversion rate = conversions ÷ clicks
Worked example
Inputs: Number of clicks: 4,000; Average cost per click (CPC): $0.85; Attributed conversions: 96; Profit per conversion: $60.
Results: Total ad spend = $3,400.00; Cost per acquisition (CPA) = $35.42; Conversion rate = 2.4 %; Campaign profit after ad spend = $2,360.00.
Frequently asked questions
What is a good CPA?
One below the profit each customer brings; benchmarks vary widely by industry.
How is CPA different from CAC?
CPA covers advertising for one action; CAC includes all sales and marketing costs.
How can I lower CPA?
Improve targeting, ad relevance and landing page conversion.