Cost per action (CPA)

Acquisition metric. How do users find and install the app?

Short answer

Cost per action (CPA) is ad spend divided by the number of users who completed a chosen in-app action, such as a sign-up or first purchase. $20k of spend and 2.5k sign-ups is a CPA of $8 per sign-up (example inputs). Use CPI to compare install prices, and CPA to judge whether those installs turn into users who do something.

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Definition

What is cost per action?

Cost per action (CPA) is the average ad spend for each user who completes a chosen in-app action, such as a sign-up, a trial start or a first purchase.

Target CPA (tCPA): a bid strategy in which the ad platform tries to win as many conversions as it can at or below an average cost you set.

Conversion window: the number of days after an install in which an action still counts towards the campaign.

Formula

How to calculate CPA

CPA = Ad spend ÷ Actions completed
Ad spend
media cost for the same campaigns and period
Actions completed
the number of users who completed the named action, attributed to that spend

Where definitions differ

VariantFormulaWhen to use it
Named CPACost per sign-up, cost per trial, cost per purchaseThe same formula with the action in the name. Always say which action you mean.
Cohort CPASpend on one day's installs ÷ Actions by those installs within n daysFair for comparing campaigns, because every install gets the same time to act.
Period CPASpend in a period ÷ Actions in that periodSimple, but mixes actions from older installs into this period's spend.
Example

CPA worked example

Example inputs, not a benchmark. Two made-up campaigns with the same spend, to show why the cheaper install is not always the cheaper user.

  1. Campaign A spends $20k, gets 10k attributed installs and 2.5k sign-ups. CPI is $2 and CPA (cost per sign-up) is $20k ÷ 2.5k = $8.
  2. Campaign B spends $20k, gets about 13.3k installs and 1.6k sign-ups. CPI is about $1.50, but CPA is $20k ÷ 1.6k = $12.50.
  3. Campaign B looks cheaper on CPI and is about 56% more expensive per sign-up, because only 12% of its installs sign up against 25% for Campaign A.

So CPI answers "what does an install cost?" and CPA answers "what does a useful user cost?". Bid and budget on the CPA for the action that predicts revenue, and keep CPI as a check on media prices.

Calculator

CPA calculator

CPA calculator

Example inputs: change them to your own numbers. The examples only make the calculator show a worked answer; they are not benchmarks or targets. Runs in your browser; nothing you type is sent anywhere.

CPA
$8
Install-to-action rate
25%
CPI (for reference)
$2
Answer

CPA vs CPI: when does each one matter?

CPI matters when you are comparing media prices across networks or creatives, because every campaign is judged on the same install event. CPA matters when you are deciding where to put budget, because it prices the users who actually sign up, subscribe or buy.

Is CPA the same as CAC?

No. CPA prices any action you choose and is usually worked out from ad spend alone, while CAC prices a new customer and normally includes costs beyond media. They only match when the action is the first payment and you count ad spend only.

By vertical

How CPA differs by vertical

EdTechThe action is often a free trial or first lesson; cost per paid enrolment is the stricter view.
FintechTrack a CPA for each step: sign-up, KYC complete, first deposit or first trade.
OTT and streamingTrial start or subscription. A cheap trial CPA flatters when trial-to-paid is low.
GamingActions such as tutorial complete or first purchase, often used as the event the ad platform optimises towards.
Pitfalls

Common mistakes

  • Not naming the action, so two teams quote different CPAs for the same campaign.
  • Comparing a 1-day CPA with a 7-day CPA.
  • Optimising towards an easy action that does not predict revenue.
FAQ

Questions

What is cost per action in mobile marketing?

It is ad spend divided by the number of users who completed a chosen in-app action, such as a sign-up or first purchase. It shows what you pay for users who do something, not just for installs.

How is CPA calculated?

Divide ad spend by the actions attributed to it within your chosen window. $20k of spend and 2.5k sign-ups gives a cost per sign-up of $8.

What is target CPA?

Target CPA is a bid strategy, not a measurement: the ad platform tries to get as many conversions as possible at or below the average cost you set. Your measured CPA is the result, and it can differ from the target.

Does the calculator send my numbers anywhere?

No. It runs entirely in your browser, and nothing you type is stored or sent anywhere.

Why do tools report different values for the same metric?

Because definitions differ: what counts as active, which attribution window applies, whether organic users are included and how days are cut by timezone. Align the definition before comparing numbers.

Which currency do the calculators use?

The calculators show US dollars, but every formula works in any currency: enter your own figures in the currency you report in and read the results in that currency.