Business Advertising
CPA calculator
Ad spend
Impressions
Clicks
Conversions
Revenue
CPA 10
1000 ÷ 100 conversions
The rest of the funnel
CPM 10
CPC 0.5
Click-through rate 2 %
Conversion rate 5 %
ROAS 5×
Profit 4,000
Revenue per click 2.5
CPA = CPC ÷ conversion rate
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320 × 100
CPA is spend divided by conversions. A 1,000 budget producing 100 conversions is a CPA of 10. It works when CPA sits below the gross profit a conversion generates — not below some published benchmark.
How to calculate CPA
1 Enter spend and the conversions attributed to it.
2 Read CPA, and check the conversion rate that produced it.
3 Compare CPA against gross profit per conversion.
4 Break CPA into CPC and conversion rate to see which one to fix.
CPA is a product of two things — cost per click and conversion rate — and knowing which is responsible changes what you do. A CPA of 40 from a 2 CPC at 5% conversion is an entirely different problem from a 40 CPA from a 0.40 CPC at 1%. The first is an auction and bidding problem; the second is a landing page and offer problem. Reporting CPA without its two components is the most common way a marketing report manages to be accurate and useless at the same time.
Questions
Cost per acquisition — the ad spend required to produce one conversion.
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300 × 250
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