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What should I set my target CPA to?

Rokas Golcas · Updated

Start with your actual average CPA from the last 30 days, which is what Google's recommended target is based on, and check that it is below what a conversion is worth to you. A target far below your current CPA can cut conversion volume, so change it at most once per conversion cycle and judge results after 1-2 cycles.

Target CPA is the average cost per conversion you ask Google to aim for. Some conversions will cost more and some less, but Google adjusts bids to keep the average close to your target.

The target you pick changes how much traffic you get. Google warns that a target set too low may cause you to miss clicks that could have converted, which means fewer conversions overall.

What does Google recommend?

If your campaign has conversion history, Google Ads suggests a target for you. As of November 2026, that recommended Target CPA is your average CPA from the last 30 days, adjusted for conversion delays.

  • Low-volume campaigns can still get a recommendation if the simulation data is strong.
  • In its FAQ on the August 2026 bidding change, Google says it does not calculate a recommended target for campaigns with fewer than 7 conversions.
  • The Target CPA simulator shows how many conversions you might have received at other targets. Use it before a big change.

How do you work out your own number?

The recommendation tells you what you pay today. Your business tells you what you can afford. Work out the most you can pay for one conversion and still make money.

For example, if 1 in 5 leads becomes a customer and a customer brings you $500 in gross profit, a lead is worth $100 at break-even. If your current CPA is below that, your target belongs somewhere between the two.

Here's how I handle it: start at or close to your recent actual CPA, not at the number you wish you paid. Tighten it once the campaign delivers. Remember that the cheapest CPA is not always the best result. In one US consumer services lead-gen account I worked on, conversions grew 54% year over year while CPA rose about 20%.

What changed in August 2026?

Since August 17, 2026, campaigns that are "Limited by budget" and use Target CPA deliver closer to the target instead of beating it. Google's example: a budget-limited campaign with a $10 target that was achieving a $5 CPA now delivers closer to $10.

So if a budget-limited campaign has been beating its target, decide what you actually want to pay:

  • Lower the target to your recent actual CPA to keep current performance.
  • Set a custom number based on your margins.
  • Use the Bid Target Adjustment Tool, available since July 6, 2026, to review your targets before you change them.

Google will not change your targets for you. More on the change in Are Target CPA and Target ROAS standalone bid strategies again?

How often should you change it?

Google says Smart Bidding reacts to a new target within minutes, but it can take 1-2 conversion cycles to actually hit it, because conversions arrive with a delay. Avoid changing the target more than once within a single conversion cycle.

When you review results, compare your actual CPA with the "Avg. target CPA" column, not with today's setting. If you are unsure about a change, choose "Save as experiment" instead of "Save" to test it against the original. For the basics, see what tCPA is in Google Ads.

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