CPA calculator
CPA is ad spend divided by conversions: $3,000 for 40 leads is a $75 CPA. Break-even CPA is what one conversion is worth to you, revenue per customer x gross margin x close rate, so a $1,200 job at a 50% margin with 1 in 4 leads closing breaks even at $150 a lead.
Calculate your CPA
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The agent sets the target from your numbers and brings every change back for approval.
How it's calculated
CPA = ad spend / conversionsBreak-even CPA = revenue per customer x gross margin x close rateTarget CPA = revenue per customer x (gross margin - profit share) x close rate
In Google Ads, Target CPA is the average cost per conversion you ask Google to aim for. Some conversions will cost more and some less, and Google tries to keep the average at your target.[1]
The default inputs, worked through
At $75 a lead this business is under both lines. It could raise bids to win more leads and still keep 10% of revenue as profit.
Setting a target CPA in Google Ads
- Set up conversion tracking first. Target CPA needs it.[1]
- Start near your recent average. Google's recommended target is the average CPA from the last 30 days.[1]
- Don't start at break-even or below your current CPA. A target set too low can cost you conversions.[1]
- Judge it over 30 days with at least 30 conversions, the window Google suggests.[1]
- Count only conversions that matter. If calls under 30 seconds count as leads, your CPA looks better than your close rate will.
For a starting point before you have data, LocaliQ's 2026 search benchmarks put the average cost per lead at $66.69 across 23 industries.[2] See Google Ads cost by industry for your row.
Link to this tool
Common questions
How do you calculate CPA?
Divide ad spend by the number of conversions. $3,000 of spend and 40 conversions is 3,000 / 40 = $75 per conversion. In Google Ads the same number is shown as cost per conversion.
How do you calculate break-even CPA?
Multiply revenue per customer by your gross margin, then by the share of conversions that become customers. A $1,200 job at a 50% margin is $600 of gross profit; if 25% of leads book, each lead is worth $150. That's the most you can pay per lead before ads lose money.
What target CPA should I set in Google Ads?
Start near what the campaign already achieves. Google recommends the average CPA from the last 30 days and suggests judging performance over 30 days with at least 30 conversions. A target set too low can cost you conversions. Move it toward your profit target in small steps.
What is a good CPA?
Any CPA below your break-even CPA makes money. For context, LocaliQ's 2026 search benchmarks put the average cost per lead across 23 industries at $66.69, from $26.84 in Arts & Entertainment to $131.63 in Attorneys & Legal Services.
Can RunAds manage my target CPA?
Yes. RunAds sets bids from your own break-even numbers, watches cost per conversion every day and shows each budget or target change as an approval card before it goes live. Signing up is free and credit packs start at $25.
Sources
- About Target CPA bidding, Google Ads Help. Checked Nov 9, 2026.You set the average cost per conversion you want. A target set too low can cost you conversions. The recommended target is the last 30 days' average CPA, and Google suggests judging performance over 30 days with at least 30 conversions.
- NEW 2026 Search Advertising Benchmarks (+Tips), LocaliQ (with WordStream), by Stephanie Heitman. Last updated June 1, 2026.Google Ads and Microsoft Ads search campaigns across 23 industries. The page labels each figure an average.
Every outside number on this page links to its source above, with the date we checked it.
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