01 Cost per result
CPA and cost per lead
What each sale or lead cost, and how far it sits from your target.
Cost per acquisition
per purchase
- Target CPA
- $40.00
- Difference
- +$2.50 (6.3%)
- Purchases needed at targetfor the same spend
- 213
- Spend at targetfor the same purchases
- $8,000.00
$2.50 over target. At $40.00, this spend should bring 213 purchases, not 200.
Formula
CPA = Ad spend ÷ Purchases
Needed at target = Ad spend ÷ Target CPA
What it tells you
CPA tells you what one result cost. It is only good or bad against what a result is worth: for a sale, the gross profit on the order; for a lead, the share of leads that buy times the profit per sale.
Use the spend and the conversions the campaign optimizes for, from the same report and date range.
Example
You spent $4,200 on lead ads and got 120 leads. CPL = $4,200 ÷ 120 = $35.00.
If one lead in five becomes a customer, each customer cost $35.00 × 5 = $175.00.
