How to Find (and Actually Use) Your Cost Per Acquisition

Jun 5, 2025 | Digital Marketing, Leads Funnels, Marketing Strategy, Small Business Owner Inspiration | 0 comments

Most business owners have no idea how much it actually costs them to get a new customer.

And without that number, marketing can feel like a gamble. You’re throwing money out there- boosting posts, running ads, trying random tactics – and hoping something works.

But here’s the truth:
If you don’t know your Cost Per Acquisition (CPA), you’re flying blind.

And if you’re a woman-led business doing incredible work and still wondering why things feel stuck? It’s not you. It’s the missing system.

Once you do know your CPA?
Everything changes.

It’s not just a number—it’s clarity. It’s power. It’s how you stop guessing and start making decisions like a CEO.

Why CPA Matters More Than You Think

Cost Per Acquisition is exactly what it sounds like:
How much you spend in marketing to get one new customer.

And when you know that number, you suddenly have clarity. You can:

✅ Tell if your marketing is working
✅ Decide how much you can spend to grow
✅ Set goals based on real numbers, not guesses
✅ Scale your business with confidence

For example:
If your CPA is $125 and your average customer brings in $1,200 in revenue, you’re in great shape.


But if your CPA is $600 and that same customer is only worth $500? Something needs to change.



The Freedom That Comes with Clarity

When you understand your CPA, marketing stops being stressful.
You’re not guessing anymore. You’re making smart, data-backed decisions.

✅ You know how many leads you need to hit your goals 
✅ You know how much you can afford to spend
✅ You can confidently invest in the right systems (like Google Ads!)
✅ You’re no longer asking “is this working?” – you know it is

This is the kind of clarity that gives you freedom as a business owner.



How to Calculate Your CPA (Step-by-Step)

Here’s the simple formula:

Total Marketing Cost ÷ Total New Customers = CPA
Let’s break it down:

1. Total Marketing Cost
Add up everything you spent on marketing in a set period (usually a month):

  • Google Ads, Facebook Ads, etc.
  • Agency fees
  • Software tools (landing page builders, email tools, etc.)
  • Your own time, if you want to include that

2. Total New Customers

Count how many paying customers you got in that same time period. (Not leads. Not clicks. Actual customers.)

3. Do the Math
Let’s say you spent $2,500 in May and got 10 new customers:
$2,500 ÷ 20 = $250 CPA



Don’t Have Sales Data? Use This Instead:
If you don’t track how many leads turn into customers yet, you can estimate your CPA like this:

  1. Find your Cost Per Lead (how much you spend to get one inquiry or form submission)
  2. Estimate your Close Rate (what % of leads become customers)

Example:

  • You get 10 leads from a $1,500 ad campaign (1500 ÷ 10) = $150 per lead
  • You close about 50% of the 10 (10 X .50) = 5 customers
  • $1,500 ÷ 5 = $300 CPA

It’s not exact, but it’s a great starting point.



What to Do With Your CPA (This Is Where the Magic Happens)


Once you know your CPA, you can:

💡 Set Your Marketing Budget
If you want 10 new customers this month and your CPA is $125, you know you need $1,250 in marketing.

💡 Improve Your Profitability
You can look at which channels or campaigns are getting you customers at the best CPA, and cut the rest.

💡 Get Off the Treadmill
No more guessing, panicking, or random acts of marketing. You’re making decisions like a CEO.

You deserve to stop spinning your wheels.

To stop wondering if your marketing is working.
To stop wasting time on things that aren’t actually moving the needle.

When you know your CPA, you take back control.


You lead with intention.
You grow with confidence.

📄 We created a simple worksheet to help you plug in your numbers and find your CPA—fast.


Download the CPA Worksheet
(attached below)

And if you want a done-for-you Google Ads system that brings in high-quality leads and tracks your CPA automatically? That’s exactly what we do.

Apply now to see if we’re a good fit: https://apply.marketingmaiden.com

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