CPA Calculator (Cost Per Action)
Use our CPA calculator to calculate your CPA (Cost Per Action). In addition, you can derive the number of acquisitions (and money) you need to hit a specific CPA.
CPA (Cost Per Action) formula:
CPA = Total cost of campaign / Number of conversions
CPA Calculator
Example of CPA calculation
Imagine an online retailer runs a digital advertising campaign to promote a new product. The desired action for this campaign is a purchase.
- Total Cost of Campaign: $5,000
- Number of Conversions (Purchases): 250
The CPA would be calculated as follows:
CPA = $5,000 / 250 purchases = $20
In this example, the Cost Per Action (CPA) is $20. This means the retailer spent $20 on advertising for each purchase made through the campaign.
Calculating CPA is essential for understanding the efficiency and effectiveness of an advertising campaign. By knowing the CPA, advertisers can gauge how much they are spending to achieve a specific action and can optimize their campaigns to improve cost efficiency and overall performance.