Cost per Acquisition measures what you spend to win one paying customer, a sharper test of marketing efficiency than cost per signup. It earns its keep only against lifetime value, where a healthy gap funds sustainable growth. Compare CPA across channels to move budget toward the ones that bring paying buyers, not just clicks or registrations.
Cost per Acquisition (CPA)
The average cost to acquire one paying customer.
What it is
Formula
CPA = Total Acquisition Costs ÷ Number of New Paying Customers