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Cost Per Acquisition (CPA) Calculator

Calculate your CPA instantly and compare to Australian SMB benchmarks by sector — so you know if your marketing spend is winning or bleeding.

Enter Your Numbers

Required

All marketing costs for the period — ads, agency fees, tools, content production
$
Number of new paying customers gained in the same period as your spend
#

Optional — LTV Analysis

Average total revenue a customer generates over their entire relationship with you
$

Your Results

Your CPA
—
AUD per new customer
Customers Acquired
—
in this period

Results are indicative. Actual figures vary based on your specific business conditions, marketing channels, and market.

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How Cost Per Acquisition Works

Cost Per Acquisition (CPA) — sometimes called Cost Per Customer — tells you how much you spend on marketing to win each new paying customer. It is one of the most important numbers in your marketing operation.

CPA = Total Marketing Spend ÷ Number of New Customers Acquired

CPA by itself is only meaningful when compared to what that customer is worth. The standard benchmark is the LTV:CPA ratio — most sustainable businesses target a ratio of at least 3:1 (the customer is worth at least 3× what you spent to acquire them).

A CPA that looks high in dollar terms may still be very profitable if your average customer has a long lifetime and high repeat value. Conversely, a low CPA can still destroy margin if your product has a thin one-off value.

To reduce CPA: improve conversion rates on landing pages, tighten your audience targeting, test different ad creative, or add referral incentives so organic word-of-mouth shares the load.

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What Is Cost Per Acquisition (CPA)?

Cost Per Acquisition (CPA) measures the total cost to acquire one paying customer. It's a crucial metric for Australian businesses running paid advertising because it tells you whether your marketing spend is sustainable.

The formula: CPA = Total Marketing Spend ÷ Number of Customers Acquired

For example, if you spent $5,000 on advertising and acquired 10 new customers, your CPA is $500.

CPA vs CPL: What's the Difference?

CPA (Cost Per Acquisition) measures cost per paying customer. CPL (Cost Per Lead) measures cost per inquiry or lead. A business might have 50 leads at $20 each (CPL = $20) but only convert 5 to customers, giving CPA = $200. Both metrics matter, but CPA is more important for profitability.

What Is a Good CPA?

A "good" CPA depends on your customer value. Use this rule: your CPA should be no more than 25–30% of the customer's lifetime value. For example, if a typical customer spends $5,000 with your business, a CPA under $1,500 is sustainable.

How to Reduce Your CPA