CPA Calculator using CPC

How much are you spending for each customer on your website? How much does it cost to get that sale or form fill? To calculate your CPA, use our free Cost per Action calculator.

CPA Calculator

CPA Calculator

CPA or cost per acquisition is a measurement used to determine the money spent to onboard a new client. 

A CPA calculator is a quick and easy way to accurately calculate your businesses cost per acquisition. Here you can find answers on what a good cost per acquisition is and the various benefits of using a CPA calculator.

If you are unsure about the specifics of CPA or CPA calculator reach out to SEO Design Chicago for a comprehensive analysis of your search engine optimization standing and full service SEO help. CPA and many other performance indicators are included in our Marketing Tools.

CPA Calculator

How to Calculate CPA

CPA = (Marketing Cost of Acquiring New Customers / Number of New Customers)

For example if you spent $100 on acquiring new customers and for that period of time you brought on 10 new customers, the CPA for this time period would equal $10.

Calculate CPA

CPA and SEO

SEO and CPA are linked heavily. Here at SEO Design Chicago we focus on CPA as a key indicator to whether advertising campaigns and natural search results are driving the right traffic to websites. 

A good SEO package should include consideration of CPA and here’s why.

SEO helps a website gain search engine results organically. This means you do not pay for SEO impressions or clicks. CPA refers to ad buying and has a direct link to a purchased ad space. 

CPA and SEO

You may think that this separates the two terms, yet the two approaches to growing a company need to be considerate of each other. 

User experience falls high in this category. If you pay for clicks or impressions and these potential customers land on a webpage that does not load fast enough, isn’t easy to navigate, or appears unappealing and outdated, then that person is less likely to purchase from your website.

SEO content should be considerate of the potential clients that click through to your webpage. Since many ads are displayed on mobile devices, mobile webpages should have high loading speeds and display the same amount of information as a desktop version.

When all the SEO work is up to par and optimized with the advertising material, then you will begin to see the best results and CPA calculations.

For information on the Essential Services that Make Up a Perfect SEO Service Package refer to this article or contact SEO Design Chicago today.

What is a Good Cost Per Acquisition?

Cost per acquisition is relative to the industry in which your business resides. Making sure you have an efficient cost per acquisition number means monitoring your budget, ad spend and industry benchmarks.

For example: A legal or finance industry benchmark CPA will most likely be higher than a benchmark CPA in the automotive industry.

Good CPA

Industry Benchmark CPA’s

The following article titled Google AdWords Industry Benchmarks 2018 shows data from 2018 on the various benchmark CPA, CPC and other indicators. 

It is important to know that this article features values for the ad buying on Google AdWords and not all ad buying platforms. 

When asking what is a good cost per acquisition make sure to use a CPA calculator and compare your value to that of the industry benchmark.

If your CPA is higher than the industry benchmark talk to your SEO agency for help improving your CPA calculator results. 

However, if your CPA is under the average benchmark for your industry you are in good shape. Make sure to continue monitoring CPA values as you implement new SEO and marketing strategies.

CPA Benchmark

Benefits of Using a CPA Calculator

The benefits of finding our CPA are endless. CPA is such an important measurement that you need to focus on when implementing marketing strategies.

Below are a few of the main reasons CPA calculators are important and beneficial:

Its Correct Every Time

A CPA calculator offers fast results that are always accurate. Doing this math on your own could result in a mathematical error that affects marketing decisions in the future, and could potentially affect the money spent on advertising. 

Make it official with a CPA calculator and avoid any small mistakes that cause big impacts. 

Monitor CPA to Save Money

Similar to any other measurement for marketing or SEO, CPA is best utilized when it is monitored and adjusted continuously. Since CPA is so directly attached to overall marketing spend it is particularly important to monitor when trying to balance a marketing budget. 

One of the main benefits of using a CPA calculator is that with each calculation of CPA you can begin to optimize your ad buying to save money. 

Ultimately, making sure you save money on advertising means you spend the leftover amount on more ad buying. This means a broader reach. 

CPA Marketing

CPA Helps Optimize Marketing

One of the major benefits of using a CPA calculator is that now you can measure the impact of onboarding customers.

CPA helps to understand several things about your customer base. Below are a few of the major indications.

Let’s say your CPA costs less than the average spending of a customer on your website. This means that the CPA is working, or at least worth the price. 

Ultimately, if your product is worth it, then customers will spend. Meaning that CPA is a good indicator of a high quality and valuable product being sold. Invest in marketing and see what it costs to acquire customers by calculating CPA regularly. However, also focus on the product and buying experience to get customers to spend continuously.

On the other hand, if your CPA is higher than what your customers spend, your marketing campaign isn’t working. At a business standpoint, spending more on acquiring clients than getting back from those clients makes no sense.

For this reason we encourage you to consistently check on the CPA of your business to ensure that ad buying campaigns are efficient and worthwhile. 

To get impactful suggestions on how to improve CPA, consult with marketing professionals and have them alter your marketing strategy.

It’s Fast

Like any calculator, one of the benefits of using a CPA calculator is that it’s fast and accurate. For a quick checkup on customer spending habits as it relates to marketing costs, run some CPA calculations.