Use our free CPA calculator to calculate the cost of acquiring a new lead or client with a Pay-Per-Click Campaign:
When planning your PPC campaigns you need to know how many leads you can possibly generate as a KPI. These are the steps to calculate the cost of acquisition or CPA:
What are you willing to spend on a Pay-per-Click Campaign (PPC) each month? And then, what is the CPC (cost per click) of the keyword you’re researching? You’ll get this from Google Keyword Planner or any other Keyword Research tool.
The result will give you the possible in-bound website traffic for your budget and the CPC you’ve entered. Play around with your budget, but remember to check the monthly search traffic generated for your specific keyword in Step 1. Your possible traffic result can obviously not be more than the actual monthly search volume for that keyword.
What is your conversion rate? You can either obtain this number from an existing Google Ads Campaign or Google Analytics. Or, if this is a new campaign, then estimate how many visitors will actually convert. Remember this is the last step in your customer’s buying journey. Not everyone converts. But, the better your campaigns,ad copy, stronger your brand or the size of your family, you can convert quickly, aim low tho. The purpose of your digital marketing is to improve your conversion rate. Better Google ads and high converting landing pages. Need help with that?
Finally, this is your CPA. The cost of acquiring a Lead or Sale with the budget you’ve been provided (or want to spend), the CPC and the Conversion Rate mentioned.
Thank you for using our free CPA Calculator.