# Cost Per Client Calculator: What is your marketing ROI?

### HOW MUCH IS YOUR FIRM SPENDING TO GET A NEW CLIENT?

To plan and budget effectively, you need at least a general idea of how much you could theoretically invest to gain a new client. Comparing this number to how much you are actually spending on each client acquisition can help ensure you aren’t going into the red and are getting a good marketing return on investment.

Wondering how to determine your cost per client acquisition (CPA)? You calculate your CPA by dividing the total amount spent on marketing by the total amount of new clients gained. Your goal is to keep CPA as low as possible while increasing your number of leads and clients.

### Calculating Cost Per Client Example

• Yourlegalwebsite.com
• A direct mail campaign to referring attorneys
• A newsletter to past clients
• Utilizing a SEO company

Let’s say after adding these expenses up your firm spent \$1,500 in marketing and gained 10 leads. Of these 10 leads 3 became a client of your firm.

Your average cost per client acquisition (CPA) is:

\$1500 spent on marketing / 3 clients = \$500 CPA

### How to Calculate Cost Per Client Acquisition

Cost Per Client Acquisition (CPA) is commonly calculated for Software-as-a-Service (SaaS) companies, but it also belongs in professional services such as law firms. The idea is to discover the amount of money it takes to secure a new client for your firm. The purpose is to compare the CPA to the revenue from the client to ensure you are not spending more money attracting clients than they are paying you for your services.

The formula involves adding up all sales and marketing costs and then dividing those costs by the total number of new clients in the same period. Those costs can include advertising, website design, postcards, pay-per-click ads, SEO, and more.

To easily determine your cost per client and other important metrics, download our free Cost Per Client Calculator by filling out the form above today!