CPA Calculator — The Best Place to Get Your Estimated Cost Per Action based on CPC

Quick and easy way to calculate the CPC of your ads.

1

Determine the CPC of your ad campaign

Knowing the CPC of your ad campaign is the first step toward calculating your cost per action. You'll input your CPC in the first form field.

2

Determine your conversion rate

Your conversion rate is the next important number to fill in. You can calculate conversion rate by taking the number of total conversions and dividing it by the number of ad interactions that turned into a conversion.

3

Reap the benefits of your new-found CPA!

When you click "solve" on our CPA calculator, you'll get an immediate cost-per-action calculation that can help improve your campaigns moving forward!

CPA using CPC



What is CPA?

Cost per acquisition, or CPA, refers to the money that you spend to obtain each customer through an ad platform. CPA also goes by CAC, or customer acquisition cost.

For example, if you ran a Facebook ad campaign that cost you $1000 and you obtained seven customers from that campaign, using a CPA calculator helps you understand how much you paid for each of those users to become a customer.

Still have questions like “what is a good cost per acquisition,” “how can I calculate CPA manually,” and more? Read on to have all of your burning CPA questions answered!

What is a CPC calculator?

Instead of doing the math on paper, a CPC calculator can give you instant results about your PPC campaign’s CPC.

A cost-per-click calculator saves you time and effort when it comes to your campaign, and you can use the time saved on another high-priority area of your strategy.

There are tons of online CPC calculators out there — all differing in qualities.

WebFX’s CPC calculator offers immediate, accurate, and free CPC results, and you can use our online CPC calculator as many times as you wish. So, bookmark it and make it a part of your routine PPC management!

What is a good cost per acquisition?

Just like many other metrics, it’s difficult to construct the ideal benchmark across all industries. But if you’re wondering “what is a good cost per acquisition?”, you’ve come to the right place. There is an estimated ideal CPA benchmark for PPC search and PPC display ads across all industries.

Channel Estimated CPA
PPC Search Ads $59.18
PPC Display Ads $60.76

You should use these benchmarks to determine the quality of your CPA and make changes to your campaign accordingly. Is it a little higher? Is it a little lower? Here’s what you should do in each situation:

If your CPA is higher than the benchmark: You could likely make small changes to your ad campaigns in order to lower your CPA. We’ll talk about what affects your CPA later!

If your CPA is lower than the benchmark: Congratulations, it means that you’re advertising effectively! You likely don’t need to change anything about your campaign, but you shouldn’t let your foot off the gas, either.

How to calculate CPA

If you’re not using a CPA calculator to determine your cost per acquisition, you might wonder how to calculate CPA on your own. Below, you can find the CPA formula to do so!

equation

CPA = cost of advertising/number of conversions

Easy enough, right? Although the formula for CPA isn’t difficult, there are many benefits that you reap by using a CPA calculator instead.

Benefits of using a CPA calculator

When you know how to calculate CPA manually, you might wonder if it’s easier to calculate on your own or to use a CPA calculator to help. Before you decide how you want to calculate your CPA moving forward, check out the benefits of using a CPA calculator below!

1. You’ll get it right every time

Whether you’re a math whiz or not, there is always room for error when you calculate something manually. If you choose to use the CPA formula to calculate your cost per acquisition, you could make one small mistake that majorly throws off your metrics.

When you opt to use a CPA calculator, on the other hand, your CPA comes out right every time. You don’t need to worry about incorrect results because the calculator does all the work for you.

2. A free CPA calculator is fast

When you use a CPA calculator, you know your cost per acquisition in seconds. You won’t have to jot down any notes or do long division. You plug in your numbers and your CPA calculator figures out your cost per acquisition for you.

Your time is precious, and if you want to find your CPA for multiple campaigns, you want to save as much time as possible. A free CPA calculator like ours helps you do just that.

3. You can get a read on the health of your ad campaigns

When you calculate cost per acquisition, you reap extreme benefits for your business — more specifically, for your ad campaigns.

After determining your CPA, you’ll get a read on the health of your ad campaign. Here’s what different CPAs tell you about your ad campaign.

  • If your CPA is more than what a customer usually spends on a single product in your store:

    There is room to improve your ads if you find that your CPA is more than a moderately priced item in your store.

    Here’s why — if, for example, your CPA is $80 and you’re advertising posters that you typically sell for $10, you’re likely paying entirely too much to convert that user to a customer. It’s unlikely that they’ll ever pay more than the calculated CPA, which means you won’t make a profit from them.

    However, you have to account for repeat customers, too. For example, if you only work with colleges who buy your posters for poster sales on campus, $80 is probably a great CPA since they’ll likely spend far more than $80 on your products.

  • If your CPA is less than what a customer usually spends on a single product in your store:

    Your ad campaign is doing its job — and doing it well, if your CPA is a lot less than what a typical customer spends in your store.

    This CPA means that you’ll likely always make a profit from your customers since you’re not paying a lot on the ads it takes to acquire them.

    At this point, you’re probably wondering what affects your CPA, and you’re likely aware that your ads play a fundamental role in determining your CPA.

    Keep reading to learn more about what affects your CPA, and why it helps you understand the health of your ads.

What affects your cost per acquisition?

When you run an advertising campaign, you want to know what affects your cost per acquisition. In this section, we’ll dive into the factors that influence your CPA.

As you comb through this next section, you will see how ad quality plays a critical role in influencing your CPA. When you retain poor quality ads, you obtain fewer customers.

cpa calculator

For example, if you spend $1000 on ads and only have two converting customers, your CPA sums up to a staggering $500 a pop. On the other hand, if you spend the same amount on ads and obtain 100 converting customers, your CPA will be a cool $10.

That said, you want to create high-quality ads to get more users to click on them and convert. The more users convert, the better for your CPA.

Let’s talk about what parts of your ad affect your cost per acquisition:

1. Product image

Nobody wants to click on an ad that features a low-quality image of your product. Not only does it make the product look bad, but it makes you look like an untrustworthy seller.

Why does your product image affect your CPA? Simple! You can’t convert users into customers if they don’t click on your ad, and it’s unlikely that they’ll trust your brand enough to click if you have a crappy product image.

2. Enticing call-to-action (CTA) button

Without a call to action (CTA) button that excites users about your product, users won’t click on your ad.

For example, if your CTA button says something like “click here,” your audience may not get the boost they need to actually click your CTA.

On the other hand, if your CTA button says something like “I have to have this item,” users will be more excited to click, and eventually purchase your product.

It’s crucial to feature a CTA button on your ad that stands out and entices users to click.

Why does a CTA button affect your CPA? If you don’t make it easy for users to take the next step in becoming a customer, they likely won’t. CTAs help guide users to the next step in the buying process, and without a good one, you won’t get the results you want.

3. Ad targeting

Ad targeting is one of the most important parts of a successful ad. If you don’t target the right audience — the audience that’s interested in your products and services — you won’t get a steady stream of conversions.

Ad targeting makes it easy to put your ads in front of the right eyes at the right time, which means more conversions and a lower CPA.

Why does ad targeting affect your CPA? If you present your ads to the wrong audience, they’re unlikely to convert. Targeting the wrong audience can lead to higher ad costs, which drives up your CPA.

4. Landing page

After users click on an ad, they end up on a landing page. There are a few qualities that all landing pages need for success:

  • An image of your product
  • Color options
  • Size options
  • Materials used
  • Price
  • Reviews
  • Product description
  • And more

Strive to give users all the reasons they need to purchase your product since your landing page is, most of the time, your last interaction with a customer before a sale (or no sale).

Why does a landing page affect your CPA? Your landing page can make or break a sale, and in the end, it can increase or decrease your CPA. If users don’t convert on your landing page, that’s one less customer, and your CPA will increase.

5. Keyword selection

There are two basic kinds of keywords that you can choose to target with your ad campaigns, and depending on which ones you choose, you’ll affect your CPC (cost per click). When your CPC increases or decreases, it also affects your CPA.

To explain, let’s first start by outlining the two kinds of keywords you can choose to target with your ad campaigns:

  • Short tail keywords: Short-tail keywords, which typically contain one or two words, are general and broad. These keywords have a high CPC since everyone wants to bid for them. For example, if you want to put out an ad for “ice cream,” there are thousands upon thousands of others who want that ad space as well. That said, your CPC increases.

    Not to mention, when you opt for short-tail keywords, you attract a general audience, and you might not always attract people from your target audience. This set up means short-tail keywords can be a huge waste of your ad budget since they don’t target your specific audiences.

  • Long-tail keywords: Long-tail keywords, which contain three or more words, are detailed and help to target a very specific audience. Since they’re specific in nature, long-tail keywords attract users more likely to convert.

    Another bonus? You’ll pay less to target long-tail keywords since not a lot of people target the same, ultra-specific terms. For example, “chocolate ice cream with brownie pieces” would have a lower CPC than “ice cream” since it’s more detailed.

Why does keyword selection affect your CPA? As we mentioned, the keywords you choose either increase or decrease your CPC. When you add up your CPCs across all ad campaigns, you’ll end up with how much you spend, in total, on your ads. When this number goes up, it affects your CPA since the cost of your ad campaign is part of the puzzle.

Improve your CPA and other metrics with WebFX

WebFX is a full-service Internet marketing agency that works with clients in a wide variety of industries to improve their online presence. We provide everything from search engine optimization (SEO) services to web design, and all strategies in between.

Since we know the importance of earning customers, we also know how to market your business in a way that improves and increases your customer base. When you work with WebFX for your marketing needs, you can rest assured that we’ll help you improve your CPA, too.

Our team has over 200 experts in-house that help create custom advertising campaigns for every client.

Your hard-earned money shouldn’t be thrown away on ad campaigns that don’t work. WebFX puts in the time necessary to get to know your business, your customer base, and more to ensure that you have the lowest possible CPA.

If you’re ready to get started on lowering your CPA, contact us online today, or give us a call at 888-601-5359!