Novaris Web Media

Cost per acquisition calculator

How much does it cost to win one new customer? Enter your spend and the customers it brought in.

Quick answer: Cost per acquisition = marketing spend ÷ new customers. Spending $2,000 to win 20 customers means each one cost $100.

The formula

CPA = marketing spend ÷ new customers

Example: $2,000 spent to win 20 customers means each one cost $100.

Why it matters

CPA only means something next to what a customer is worth. If a customer brings you $300 over time and costs $100 to win, the channel works. If they bring $80, it does not.

Count the whole cost

Include ad spend, tools and any agency or freelancer fees for the period — otherwise the number looks better than it is.

Questions and answers

What is the difference between CPA and CAC?

They are often used interchangeably. CAC (customer acquisition cost) usually includes all sales and marketing costs; CPA is often used per campaign or channel.

What is a good CPA?

One that is clearly lower than the profit a customer brings you over their lifetime. Use the lifetime value calculator to find that ceiling.

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