How To Calculate Target CPA: Shopify & Facebook Ads Tutorial 2025

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Hey! If you’re new to the channel, my name is Nick Theriot

I’ve been running Facebook ads since 2015 and have done over $50m in revenue for our clients. We work with a variety of brands but the majority or e-commerce!

How To Calculate Target CPA: Shopify & Facebook Ads Tutorial 2025

In today’s video, I break down how to calculate your target cost per purchase (CPA) for Facebook ads to ensure you’re making data-driven decisions when scaling your business. Without a clear understanding of your target CPA, you’re essentially flying blind—unable to determine when to scale, pause, or adjust your campaigns effectively.

I’ll walk you through a detailed step-by-step process using an interactive calculator that allows you to input key metrics like average order value (AOV), cost of goods, shipping fees, and lifetime value (LTV). You’ll learn how to set realistic profitability goals, model different ad spend scenarios, and optimize for both short-term and long-term growth.

We’ll also discuss how to balance immediate profit with LTV-driven scaling strategies, understanding break-even ROAS, and leveraging customer data to make informed marketing decisions. Whether you’re running an e-commerce store, a subscription-based business, or an info product, this strategy will help you build a sustainable and profitable Facebook ads system.

#Facebookads #facebookadvertising #facebookmarketing

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-Nick Theriot