CPA Calculator
Posted by Dinesh onOnline CPA calculator to calculate cost per acquisition of your advertisement campaign.
If your goal is to increase revenue, your budget might be unlimited so long as revenue is increasing and you are within your target CPA.
What is CPA?
Cost Per Acquisition - In this model the advertiser pays explicitly per transaction type made by the buyer that resulted from a click on a banner impression. Payment depends either on the cost of lead, cost of sale or a percentage of the sale's revenue. For example, a banner is being shown 200,000 times, and being clicked 1000 times. 10 clicks converted to a lead where the advertiser pays $5 per lead. The total advertising cost would be 10*5 = $50.
Cost Per Acquisition Calculation
Formula:
CPA = Cost to an advertiser / ( Impressions x CTR x CR )
where,
Impressions - Number of times an advertisement is displayed,
CTR - click through rate,
CR - conversion rate,
CPA - cost per acquisition.