What is CPA and how do you calculate it?
CPA (cost per acquisition, also cost per conversion, cost per lead or cost per result) is what each conversion cost: spend divided by conversions. $2,400 for 60 conversions is a $40 CPA.
Break-even CPA = average order value × gross margin. Above it, each sale from ads loses money.
CPA is CPC divided by conversion rate
CPA = CPC ÷ (conversion rate ÷ 100). A $1.50 CPC at a 3% conversion rate is a $50 CPA. To bring CPA down, either buy clicks more cheaply or convert more of them; the marketing funnel calculator shows which step is losing the most people.
Catch CPA spikes early
A sudden CPA jump is usually broken tracking, a paused converting campaign, or budget shifting to weaker audiences. The ad report generator compares the last 7 days with the 7 before and flags campaigns spending without converting. More in catching CPA and spend anomalies.
| Metric | Formula | Tells you |
|---|---|---|
| CPM | spend ÷ impressions × 1,000 | what reach costs |
| CPC | spend ÷ clicks | what traffic costs |
| CTR | clicks ÷ impressions × 100 | how compelling the ad is |
| Conversion rate | conversions ÷ clicks × 100 | how well the landing page converts |
| CPA | spend ÷ conversions | what a result costs |
| ROAS | revenue ÷ spend | what each $1 of spend returns |
How to calculate CPA
- Choose what to calculate. Pick CPA, ad spend or conversions.
- Enter the other two values. Type the two you know, from your ad platform’s report for the same date range.
- Read the result. The answer updates as you type, using CPA = ad spend ÷ conversions.
Frequently asked questions
What is the difference between CPA and CPL?
CPL (cost per lead) is a CPA where the conversion is a lead. The formula is the same: spend ÷ leads.
What is a good CPA?
One below your break-even CPA (average order value × margin), or below the value of a lead to the business. Industry averages vary too much to be a useful target.
How many conversions will my budget get?
Divide the budget by the expected CPA. $5,000 at a $40 CPA is about 125 conversions.
How do I lower my CPA?
Improve conversion rate (landing page, offer, form length), lower CPC (better ads, tighter targeting), and move budget to the campaigns and audiences with the lowest CPA.