CPA calculator
Cost per acquisition tells you what you pay to win one customer or order. Add your order value and margin to see whether each sale is actually profitable.
How to use this tool
- 1Enter total ad spend.
- 2Enter the number of conversions it produced.
- 3Add average order value and gross margin.
- 4Read CPA, profit per order and maximum affordable CPA.
- 5Use the maximum CPA as the target when you set up cost caps.
The CPA formula
CPA equals ad spend divided by conversions. Spending 1,200 dollars to get 48 orders is a CPA of 25 dollars.
To judge it, compare CPA with the gross profit of an order. At a 65 dollar average order and 55% margin, each order brings about 35.75 dollars of gross profit, so a 25 dollar CPA leaves about 10.75 dollars.
How to lower CPA
- Test new hooks and creative angles to improve click-through rate
- Remove friction from checkout to raise conversion rate
- Retarget engaged visitors with proof and offers
- Consolidate ad sets so the algorithm gets more data
Frequently asked questions
What is a good CPA?
Any CPA below your gross profit per order is profitable on the first sale. Your target depends on margins and how often customers buy again.
Is CPA the same as CAC?
They are close. CPA usually refers to a campaign metric, while customer acquisition cost often includes all marketing and sales costs.
Should I use cost caps?
Cost caps can protect profitability once you know your maximum CPA. Start with a cap close to the maximum shown here.
Why is my CPA higher on new campaigns?
New campaigns go through a learning phase. Give them enough budget and avoid frequent edits so delivery can stabilise.
Does CPA include product cost?
No. CPA only includes advertising spend. Product costs are covered by the margin input.
See which Facebook and Instagram ads your competitors keep running, the clearest signal of what is profitable in your niche.