What is the CPA formula?

The CPA formula is: CPA = Total Marketing Cost ÷ Number of Acquisitions. For example, if you spent $10,000 on a campaign and acquired 200 customers, your CPA is $50. This formula works for any marketing channel or campaign type.

A good CPA depends on your industry and customer lifetime value (LTV). As a rule of thumb, your CPA should be no more than 33% of your customer LTV. For SaaS, average CPA ranges from $50-$500. For eCommerce, it's typically $10-$50. For B2B services, expect $100-$1,000+.

What's the difference between CPA and CAC?

CPA (Cost Per Acquisition) typically measures the cost of a specific conversion action (purchase, signup, lead). CAC (Customer Acquisition Cost) is broader and includes all sales and marketing costs to acquire a paying customer. CAC usually includes salaries, tools, and overhead, making it higher than CPA.

How do I calculate CPA for Google Ads?

For Google Ads CPA, divide your total ad spend by the number of conversions tracked. If you spent $5,000 and got 100 conversions, your Google Ads CPA is $50. Google Ads also offers Target CPA bidding, which automatically optimizes bids to achieve your desired CPA.

How can I lower my CPA?

To reduce CPA: 1) Improve ad targeting to reach more qualified audiences, 2) Optimize landing pages for higher conversion rates, 3) Test different ad creatives and copy, 4) Use retargeting to convert warm audiences at lower cost, 5) Focus budget on your best-performing channels, 6) Improve your offer or value proposition.

Should I use CPA or ROAS to measure campaign success?

Use both. CPA tells you acquisition efficiency, while ROAS (Return on Ad Spend) tells you revenue generated. A low CPA is meaningless if those customers don't generate revenue. Ideally, track both: aim for low CPA AND high ROAS.

CPA Calculator

Calculate your CPA instantly. Compare against industry benchmarks, get optimization tips, and improve your marketing ROI.

Enter Your Values

Total Marketing Cost*

Total amount spent on the campaign or channel (ad spend, creative costs, etc.)

Number of Acquisitions*

conversions

Total conversions achieved (purchases, signups, leads)

Average Order Value (Optional)

Average revenue per acquisition - used to calculate ROAS

Customer Lifetime Value (Optional)

Average total revenue from a customer - used to calculate CPA:LTV ratio

Formula

CPA = Total Marketing Cost ÷ Number of Acquisitions

Cost Per Acquisition measures how much you spend to acquire one customer or conversion. Lower CPA means more efficient marketing spend, but should always be evaluated against customer value (LTV) to ensure profitability.

Cost Per Acquisition (CPA)$50

$50.00 CPA — Excellent! CPA is only 17% of LTV. Very profitable acquisition.

LTV:CPA Ratio6.0:1

Profit Per Acquisition$250

Break-even CPA (Max)$300

Target CPA (1:3 ratio)$99

ROAS1.50x

Total Revenue$15,000

Gross Profit$5,000

Efficiency GradeA+ (Excellent)

Cost per $1 Revenue$0.67

How Does Your CPA Compare?

Very Low$0-25 — Excellent for high-volume e-commerce

< $25

Low$25-50 — Great for DTC and consumer products

$25 – $50

Moderate$50-100 — Average for SaaS and mid-market

$50 – $100

Higher$100-250 — Common for B2B and enterprise

$100 – $250

High$250+ — Enterprise B2B or needs optimization

> $250

Source: WordStream, HubSpot Industry Benchmark Data 2024

How to Calculate CPA

Enter your total marketing cost (ad spend, creative, agency fees)
Enter the number of acquisitions (purchases, signups, or leads)
Optionally add Average Order Value to see ROAS
Optionally add Customer Lifetime Value to see CPA:LTV ratio
View your CPA, efficiency grade, and profitability metrics
Compare against industry benchmarks
Chat with our AI Marketing Analyst for optimization strategies

CPA Benchmarks by Industry

$50 - $500

SaaS Average CPA

$10 - $50

eCommerce Average CPA

$100 - $1,000

B2B Services Average CPA

$20 - $80

DTC Brands Average CPA

$48.96

Google Ads Average CPA

$18.68

Facebook Ads Average CPA

$75 - $200

LinkedIn Ads Average CPA

1:3 or better

Healthy CPA:LTV Ratio