Health Check your Average CPC

How to Use the Calculator-Step-By-Step

1. Enter Conversion Rate
   Add your current or expected conversion rate as a percentage (e.g., 2.5%).
2. Enter Target CPA
   Input the maximum amount you’re aiming to spend per conversion.
3. Click “Calculate.”
   The calculator will show the maximum CPC you can afford to hit your CPA goal.

Tip: This is especially helpful before launching new campaigns or while setting automated bidding strategies.

Understanding CPC in Paid Campaigns

Your CPC (Cost Per Click) is a critical lever in digital ads. But spending ₹50 per click only makes sense if your conversion rate and target CPA justify it.

Ideal CPC = Target CPA × (Conversion Rate ÷ 100)

This reverse calculation helps you to health check whether your bids are realistic based on the campaign’s current performance.

Benchmarks: Avg. CPC by Channel (2025)

These ranges vary depending on the industry, audience, and campaign objective.

Practical Example

Inputs

• Conversion Rate: 5%
• Target CPA: ₹400

CPC = ₹400 × (5 ÷ 100) = ₹20

Interpretation:

To keep your cost per acquisition under ₹400, your average CPC should not exceed ₹20 based on a 5% conversion rate.

Tips to Optimise CPC

• Improve Conversion Rate: Enhancing landing page UX and targeting increases conversions per click.
• Use Ad Extensions: They boost CTR, which can lower CPC on platforms like Google Ads.
• Target the Right Audience: Filter out users unlikely to convert.
• Refine Ad Copy: Strong messaging increases relevance and Quality Score.
• Run A/B Tests: Regular testing helps find winning combinations for better cost efficiency.