Cost-Per-Demo (CPD) Calculator

How to calculate Cost Per Demo?

Cost Per Demo measures the direct marketing or sales investment required to generate a single product demonstration.

Formula: CPD = Total Campaign Spend / Total Number of Demos

Using the CPD calculator: an example

Scenario: A SaaS company spends $5,000 on LinkedIn ads resulting in 25 completed demos.

Step-by-step calculation:

• Divide the $5,000 total spend by the 25 demos.
• Identify the CPD as $200 per demo.
• Apply your 20% close rate to see if the $1,000 CAC is sustainable.

Frequently Asked Questions

What is a good Cost Per Demo?

Benchmarks vary by industry, but generally, your CPD should be significantly lower than your Average Deal Value to ensure a positive ROI.

How can I lower my CPD?

Focus on improving ad targeting to increase demo requests or optimizing your landing page conversion rates.