Health Check Your CPA Target

How to Use the Calculator – Step-by-Step

1. Enter Conversion Rate
   Input your actual or expected conversion rate based on landing page or funnel data.

2. Enter CPC
   Add your average cost per click (CPC) from Google Ads, Meta, or other platforms.

3. Click ‘Calculate’
   Instantly see your CPA. Compare it to your business’s target or breakeven cost per acquisition (CPA).

Tip: A lower CPA generally means a more cost-effective acquisition. But it must also be balanced with customer lifetime value (CLTV).

Understanding CPA Health

Cost Per Acquisition (CPA) indicates the amount you pay to acquire one customer or conversion.

• If your CPA is too high, your acquisition cost is hurting profitability.

• If your CPA is too low, you may be underinvesting in growth opportunities.

This calculator acts as a health check to see if your inputs align with your target outcomes.

Benchmarks for CPA by Channel (2025)

Note: CPA benchmarks vary by industry and campaign goal (lead vs. purchase).

Practical Example

Inputs:

• Conversion Rate: 2%

• Average CPC: ₹50

Calculation:

CPA = ₹50 ÷ (2 ÷ 100) = ₹2,500

Interpretation:

You’re paying ₹2,500 to acquire one customer. If your product sells for ₹1,000, you’re losing money and need to optimise your funnel.

Tips to Improve CPA Health

• Enhance Landing Pages to increase conversion rates.

• Refine targeting to reduce irrelevant clicks.

• A/B Test Creatives to improve engagement and CTR.

• Monitor Bounce Rates for poor-performing pages.

• Use Smart Bidding to optimise for conversions automatically.