We have provided a useful CPA Calculator below to work out your CPA. In addition, you can derive the number of acquisitions (and money) you need to hit a specific CPA. Feel free to experiment with different scenarios in order to help you understand this pricing model better.
CPA stands for Cost Per Acquisition or Cost Per Action.
Cost Per Acquisition means paying for sales. A payout is triggered when a sale is caused by an ad being seen (or clicked on). It is generally up to the advertiser which ad caused a sale, as directly attributing a sale to a specific reason can be very complicated online.
Cost Per Action means that a payout is triggered every time an ad causes a specified action. This could mean anything in theory, but in practise is usually used for form sign ups.
Acquisitions or Actions are also commonly referred to as conversions (as in “my campaign got 20 conversions”). Of course CPC was already taken by Cost Per Click which is probably why the clunky Cost Per Acquisition was chosen in instead of Cost Per Conversion.
The equation for CPA ads is:
Click to enlarge
CPA = Ad Spend / Conversions
Our CPA Calculator:
Find out more
- CPA Definition
- Conversion Definition
- CPA Advice for Website Owners
- CPA Advice for Ad Buyers
- Conversion Rate Calculator