How to calculate CPA in Google Ads

First thing is understanding what CPA is, it stands for Cost Per Acquisition. It's essentially the amount of money you have to spend on Google ads to get one customer. It's like calculating how much each customer costs you in terms of your advertising budget. For example, if you spent $100 on ads and got 10 new customers, your CPA would be $10 per customer. It's a way to measure the efficiency and effectiveness of your Google ads in terms of gaining new customers.

CPA = Number of Conversions/ Total Cost​

Here's a step-by-step guide to calculate CPA in Google Ads:

Total Costs:

• Sum up all the costs associated with your Google ads campaign, including ad spend, management fees, and any other related costs.

Number of Conversions:

Find out the total amount of conversion from your Google ads campaign, the conversions is determined by your campaign goal

• Purchases
• Form submission/leads
• Downloads
• Calls

 Assuming you have accurate tracking in place you should be able to determine the total amount of conversion per campaign otherwise you will need to manually figure out which conversion was a result of Google ads.

Calculate CPA:

Use the formula mentioned above and figure out your sum of cost associated with google ads and divide it by the amount of conversions received.

For example, if you spent $1,000 on a campaign and $300 for Google ads management and received 100 conversions (e.g., purchases or sign-ups), the CPA would be ($1,000 + $300) divided by 100, resulting in a CPA of $13

Maximize Your Ad ROI with Expert Google Ads Management! Drive More Clicks, Conversions, and Profits. Let's Optimize Your Campaigns for Success - Contact Us Today and Boost Your Business!