Enter the total cost of the campaign and the number of actions received into the calculator to determine the cost per action.

## 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.

1. First, determine the total cost of the campaign. In this example, the total cost is $500.00. 2. Next, determine the number of desired actions received. In this case, the desired action was an email signup form and 10 people signed up. 3. Finally, calculate the cost per action using the formula above: • CPA = MC / #A • CPA =$500 / 10
• CPA = \$50/ actions