Enter the total cost and the total number of sales into the calculator to determine the CPS (cost per sale).

CPS Formula

The following formula is used to calculate the cost per sale (CPS).

CPS = TC / TS

  • Where CPS is the cost per sale ($/sale)
  • TC is the total cost spent to make all of the sales ($)
  • TS is the total number of sales made

CPS Definition

CPS, short for cost per sale, is a metric used in business to describe the amount of money it takes to make one sale of an item or service.

For example, if a candy shop sells candy bars, the cost per sale would equal how much the candy shop had to spend on just one candy bar in order to sell it.

Example Problem

How to calculate CPS?

  1. First, determine the total cost of the products.

    This total cost can include the cost of all products sold, the overhead, marketing, and any additional costs that went into making all of the sales. For this example, we are analyzing just a single marketing campaign’s effect on sales. The total spent was $500.00.

  2. Next, determine the total sales made.

    During the time the marketing campaign was active, 100 sales were made.

  3. Finally, calculate the CPS.

    The cost per sale is then calculated using the formula above:
    CPS = TC / TS
    CPS = 500 / 100
    CPS = 5$/Sale.