Calculate Cost Per Acquisition, Budget, or Conversions.
CPA (Cost Per Acquisition or Cost Per Action) is a vital financial metric for marketers. Unlike metrics that measure traffic (like CPC), CPA measures actual results. It tells you exactly how much money you had to spend on advertising to acquire one paying customer or generate one qualified lead.
This tool helps you calculate your CPA quickly, but it also works in reverse. If you have a target CPA (e.g., "I can afford to spend per sale") and a total budget, this tool will tell you exactly how many conversions you need to achieve to make the math work. This is essential for forecasting and setting KPIs for your marketing team.
The formula is: CPA = Total Ad Spend / Total Conversions. For example, if you spend 0 and get 10 sales, your CPA is .
A conversion is whatever valuable action you are tracking. For an e-commerce store, it's a purchase. For a SaaS company, it might be a free trial signup. For a local service business, it might be a phone call or a form submission.
A "good" CPA is simply one that is lower than your Customer Lifetime Value (CLV) or your immediate profit margin. If you sell a product for 0 with a cost, your CPA must be below to be profitable on the first sale.
They are very similar. CPA usually refers to "Acquisition" (a sale), while CPL stands for Cost Per Lead (collecting contact info). The math is the same, but the business value of a "Lead" is usually lower than an "Acquisition."