How is CPA calculated?

CPA = ad spend ÷ conversions. ₹20,000 spent for 40 conversions is a ₹500 CPA.

What is break-even CPA?

The highest CPA at which a sale still covers its costs: average order value × gross margin. Anything under it is profitable, before overheads.

What's the difference between CPA and CAC?

CPA usually covers ad spend for one conversion in one channel. Customer acquisition cost (CAC) includes all sales and marketing costs for a new customer, so it's normally higher.

How do I lower my CPA?

Improve conversion rate on the landing page, pause keywords and audiences that don't convert, tighten targeting and test stronger offers or creative.

CPA Calculator · Calculators

Cost Per Action (CPA) Calculator

Get your cost per acquisition and see whether each sale makes money.

100% free
No sign-up
Runs in your browser

Your numbers

Ad spend

Conversions

Sales, leads or sign-ups the spend produced.

Break-even CPA

Average order value

Or the value of one lead to your business.

Gross margin

Profit on a sale before advertising costs.

Result

Cost per action (CPA)

$400

$60,000 ÷ 150 conversions

Break-even CPA

$525

AOV × gross margin

Profit per conversion

$125

Profit after ad spend

$18,750

Profit per conversion × conversions

CPA as a share of break-even

Break-even

Profitable

Your CPA is only 76% of break-even, so every conversion is profitable. You have room to scale spend carefully.

CPA = ad spend ÷ conversions. Break-even CPA = AOV × gross margin. Calculated in your browser; nothing is stored.

How it works

How to use CPA Calculator

Enter your ad spend and the conversions it produced.

Add your average order value and gross margin to get break-even CPA.

Read the verdict to see whether each conversion is profitable.

About

About this tool

Cost per action (CPA), also called cost per acquisition, is what you pay in advertising for each conversion: a sale, a lead or a sign-up. Divide ad spend by conversions: ₹60,000 for 150 sales is a ₹400 CPA.

A CPA only means something next to what a conversion is worth. Your break-even CPA is average order value × gross margin: the most you can pay for a sale before it loses money. With a ₹1,500 order and a 35% margin, that's ₹525. This calculator compares the two and shows profit per conversion and in total.

If you're generating leads rather than sales, use the value of a lead in place of order value, for example average deal size × lead-to-customer rate.

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