Target CPA calculator

Calculate your target CPA

Using the three business inputs below, our calculator will generate the target CPA you need to achieve your advertising goals.

Average profit per customer in $ based on lifetime value

$

Especially if you're a B2B advertiser or if you sell subscriptions or financial products, you want to use the total profit you make on a customer during their lifetime.


On the cost side, it's best not include overhead costs that don't increase (much) when serving additional customers, such as the rent and salaries that won't increase (much) by acquiring new customers.

Percentage of that margin you're willing to invest in acquisition

0
%
5
25
50
75
100

For most advertisers, 50% to 70% is the profit-maximizing range.

A higher percentage will allow you to bid more aggressively and capture more market share, but it will be at the expense of profitability.

A lower percentage will allow you to keep more of your margin, but it will be harder to compete with advertisers who are willing to invest more of their margin into acquisition.

If you set this to 100%, your advertising is breaking even.

Lead-to-sale conversion rate

0
%
0
5
10
15
20
25
30

This is the percentage of the leads from your website (usually form fills) that become paying customers.

Please note that this percentage may vary strongly by marketing channel, campaign, location, etc. so make sure to import as much advertising data as possible into your CRM.

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Summary

Average lifetime profit per customer
$
0
Percentage of margin allocated to acquisition
0
%
Lead-to-sale conversion rate
0
%
Your target CPA should be
$
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