Enter the total cost of the campaign and the number of actions received into the calculator to determine the cost per action.
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Cost Per Action Formula
The following equation is used to calculate the Cost Per Action.
CPA = MC / A
- Where CPA is the cost per action ($/action)
- MC is the marketing cost ($)
- #A is the number of actions
To calculate the cost per action, simply divide the cost by the number of desired actions received.
What is a Cost Per Action?
Definition:
A cost per action is a term used in marketing to describe the total cost it takes to receive one desired action by a customer. Typically this action is a purchase, signup, registration, etc.
How to Calculate Cost Per Action?
Example Problem:
The following example outlines the steps and information needed to calculate Cost Per Action.
- First, determine the total cost of the campaign. In this example, the total cost is $500.00.
- Next, determine the number of desired actions received. In this case, the desired action was an email signup form and 10 people signed up.
- Finally, calculate the cost per action using the formula above:
- CPA = MC / #A
- CPA = $500 / 10
- CPA = $50/ actions
