CPA Calculator (Cost Per Action)
Determine the cost of each conversion or acquisition in your campaigns.
Your Cost Per Action (CPA) is:
$0.00
Understanding Cost Per Action (CPA)
What is CPA?
Cost Per Action (or Cost Per Acquisition) is a performance marketing metric that measures the total cost to acquire a single paying customer or generate a specific conversion (like a sale, lead, or signup). Unlike CPC, which measures the cost of a click, CPA measures the cost of a result.
How to Calculate CPA
The formula for calculating Cost Per Action is simple:
CPA = Total Ad Spend / Total Number of Actions (or Conversions)
For example, if you spent $1,000 on an advertising campaign and it resulted in 50 sales, your CPA would be $20 ($1,000 / 50 sales).
Why is CPA Important?
CPA is arguably one of the most important metrics for performance-focused marketers:
- Measures Profitability: It directly ties your ad spend to actual business results. If your CPA is lower than your customer lifetime value (LTV), your campaign is profitable.
- Focuses on Results: It shifts the focus from vanity metrics (like impressions or clicks) to what truly matters: generating valuable actions for the business.
- Optimizes Campaigns: By comparing the CPA of different campaigns, ad sets, or keywords, you can allocate your budget to the most profitable areas of your marketing.
- Lowers Risk: In CPA-based bidding models, you only pay when a specific action is completed, which can be a lower-risk way to advertise compared to paying for impressions or clicks.