The CPA calculator shows what your CPC (cost per click) and site conversion rate need to be in order to remain under your target acquisition cost. The blue areas are below your target CPA and the red is above.
CPA stands for Cost Per Acquisition and is a financial metric used by marketers to track and measure the aggregate cost of a user taking an action that leads to a conversion.
CPA is an essential metric to track and measure in order to understand how much new customers are costing you and whether your advertising strategy requires optimization.
It is possible to calculate cost per acquisition using a variety of complex formulas, but in general, the following is the most common approach:
CPA = Total marketing spend divided by the total number of acquisitions.
Imagine that you run a Tiktok campaign for 10 days with an advertising budget of $1000 to promote your dropshipping store.
Your campaign ends up bringing you 25 sales, giving you a CPA of:
CPA = $1000 / 25 = $40
Current Average CPC - is the average amount you pay per click on an advertisement.
Average Site Conversion Rate - is the average rate of visits to your online store that leads to a conversion.
Target Acquisition Cost - is the budget you aim to allocate to acquire a new customer.
Calculated Acquisition Cost - is the average amount you are currently paying to acquire a new customer based on your cost per click and conversion rate.
Dropship in the News
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