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How to Calculate CPA

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi Friends.

 

I want to know that how to calculate CPA in Adwords

1 Expert replyverified_user
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Marked as Best Answer.
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Accepted by CassieH (Community Manager)
February 2016

Re: How to Calculate CPA

Participant ✭ ✭ ☆
# 2
Participant ✭ ✭ ☆
Hi Jagdeep,

Welcome to the community! To calculate CPA, you'll need to take cost and divide it by conversions. If you want to know the cost per converted click (as opposed to cost per conversion), you will take the cost and divide it by converted clicks.

Converted clicks are the number of clicks that converted, whereas conversions are the total number of conversions (previously called many-per-click conversions). Since one visitor could convert multiple times, the conversion column will tell you the total count of conversions and the converted clicks column will show you the number of unique visits that resulted in a conversion.

Hope this helps!

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Marked as Best Answer.
Solution
Accepted by CassieH (Community Manager)
February 2016

Re: How to Calculate CPA

Participant ✭ ✭ ☆
# 2
Participant ✭ ✭ ☆
Hi Jagdeep,

Welcome to the community! To calculate CPA, you'll need to take cost and divide it by conversions. If you want to know the cost per converted click (as opposed to cost per conversion), you will take the cost and divide it by converted clicks.

Converted clicks are the number of clicks that converted, whereas conversions are the total number of conversions (previously called many-per-click conversions). Since one visitor could convert multiple times, the conversion column will tell you the total count of conversions and the converted clicks column will show you the number of unique visits that resulted in a conversion.

Hope this helps!

Re: How to Calculate CPA

Rising Star
# 3
Rising Star
HI Jagdeep,

Amy has given you a good brief on the concept of CPA. Just wanted to give you a more mathematical version of it.

CPA is defined as the cost you incurred for every acquisition you made through your online campaign. Acquisition can vary from case to case, for you Acquisition can be a lead or sale.

Formula for CPA is Total cost of (Campaign/adgroup/keyword) / total number of leads recorded

i.e. CPA = Total Cost/Total Number of Leads.

As mentioned above CPA can be calculated at various levels right from Campaigns to the keyword. And it is always a good practice to look at all of these levels to understand if your campaign/adgroup or keyword is profitable to you or not.

For a lead based account/campaign you need to consider 'Converted Clicks' as the total number of leads in the formula and for a eCommerce account you need to consider 'Conversions' while calculating the CPA.

Hope this Helps!

Cheers!

Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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Re: How to Calculate CPA

Follower ✭ ☆ ☆
# 4
Follower ✭ ☆ ☆
Hi Sashshank,

I would like to ask you a question regarding CPA. I found this formula CPA = ad spend/[number of impressions x CTR x CR]. This formula is totally the opposite from CPA = Total cost / # of conversions

I want to calculate CPA for our AdWords campaigns: According to the 1st formula the CPA = €2972 / 53722 x .0377 x .0381 = 39€

Whereas with your formula I get a total different number CPA = €2972 / 49* = €60,65
*Turned into clients

Which is the one I should use?

Thanks in advance!