Marketing glossary
What is CPA (Cost Per Acquisition)?
CPA (Cost Per Acquisition): The average cost to get one conversion, such as a lead, booking, or sale. Calculated as ad spend divided by conversions.
CPA is often the most useful day-to-day efficiency metric for lead generation. Compare it with the value of a customer (see LTV) to decide how much you can profitably spend.
Related terms
- CAC (Customer Acquisition Cost)The total cost of winning one new customer, including ad spend, agency or team costs, and tools.
- LTV (Customer Lifetime Value)The total revenue (or profit) a business can expect from one customer over the entire relationship.
- ROAS (Return on Ad Spend)Revenue generated for every dollar spent on ads. A ROAS of 4 means $4 in revenue for every $1 of ad spend.