Formula
CPA = amount spent ÷ conversions (sales, sign-ups or leads). The break-even CPA is the profit per sale before ads: above it, every sale loses money.
Example
$2,000 in ads and 50 sales is a $40 CPA. If each sale makes $60 profit before ads, you keep $20 per sale and $1,000 from the campaign.
Work out the profit per sale with the profit margin calculator, or for online marketplaces, the marketplace pricing calculator.
Frequently asked questions
Is CPA the same as CAC?
Close. CPA usually looks at one campaign; CAC (customer acquisition cost) adds up all marketing and sales costs for the period.
What if customers buy again?
Then you can accept a higher CPA on the first sale, because later purchases make up the difference.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.