Marketing & Acquisition
CPA (Cost Per Acquisition)
The cost of acquiring a single conversion (sale, lead, or signup) through a specific marketing channel.
Formula
CPA = Channel Ad Spend / Number of ConversionsWhat is CPA?
Cost Per Acquisition measures how much you spend to get one conversion through a specific marketing channel or campaign. Unlike CAC, which is a company-wide metric, CPA is typically calculated per channel or campaign.
CPA vs. CAC
- CPA: Cost per conversion on a specific channel
- CAC: Total cost to acquire a new customer across all channels
Your CAC is usually higher than your best channel's CPA because it includes all marketing overhead.
Example
You spend $2,000 on Instagram ads and get 40 purchases. CPA = $50 per acquisition.
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