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Cost Per Acquisition (CPA) Calculator
Determines the total marketing cost required to gain one new paying customer.
How to Calculate Cost Per Acquisition (CPA) Calculator
The formula to calculate this metric is straightforward.
CPA = Total Campaign Cost / New Customers Acquired
A Real-World Example
Scenario: Campaign cost = $10,000, New customers = 200
CPA: $10,000 / 200 = $50.00 per customer
Why Cost Per Acquisition (CPA) Calculator Matters for Your Business
- The single most important metric for evaluating marketing efficiency.
- Determines whether your customer acquisition cost leaves room for profit based on customer lifetime value.
- Helps allocate budget across channels by comparing which has the lowest CPA.
Frequently Asked Questions
What is a good CPA?
A good CPA is one that is significantly lower than your customer lifetime value. The ideal LTV:CAC ratio is 3:1.
How is CPA different from CPC?
CPC measures cost per click. CPA measures cost per actual customer. You might get cheap clicks (low CPC) but few conversions (high CPA).
How do I lower my CPA?
Improve targeting, optimize landing pages, test different ad creatives, use retargeting, and refine your audience segments.