Free tool
Ideal CPA Calculator
How much can you pay for a conversion without losing money? Enter 4 numbers and get your target CPA instantly.
How the ideal CPA is calculated
Ideal CPA = Average order value × Net margin × Closing rate × (1 − Profitability goal)
The calculation starts from what a conversion really earns you: average order value multiplied by your net margin gives the gross profit per sale. The closing rate adjusts that profit when your conversions are leads (only a share of them sign). Finally, the profitability goal removes the share of margin you want to keep: what remains is the maximum budget available to acquire the conversion.
Example: €1,000 average order value, 10% net margin, 70% closing rate, 10% profitability goal → 1,000 × 0.10 × 0.70 × 0.90 = €63. Above €63 per conversion, the campaign destroys value.
Frequently asked questions
What is an ideal CPA?
The ideal CPA (cost per acquisition) is the maximum amount you can pay for a conversion while still hitting your profitability goal. Below it, your campaign is profitable; above it, you lose money on every acquisition.
I run an e-commerce store, what closing rate should I use?
Use 100%. The closing rate is for lead generation businesses, where only a share of leads become clients. In e-commerce, the conversion (the purchase) already is the sale.
How do I use this CPA in Google Ads or Meta Ads?
Use it as a ceiling for your bids: with Target CPA bidding (or cost per result goal on Meta), set a target at or below your ideal CPA. Also compare your actual CPA over the last 30 days: if it exceeds the ideal CPA, the campaign is not profitable.
What is the difference between CPA and CPL?
CPL (cost per lead) measures the cost of a prospect, CPA the cost of an acquisition (a sale or a closed client). This calculator handles both: with a closing rate below 100%, the result is the ideal CPL to pay per lead.
Is your actual CPA above your ideal CPA?
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