Cost Per Acquisition (CPA)

TL;DR: Cost Per Acquisition (CPA) is a marketing metric that calculates the average cost to acquire a new customer or lead. It's calculated by dividing the total cost of acquiring customers by the number of conversions achieved.
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Cost per acquisition is the amount spent by an entity to acquire new customers through advertising and other paid campaigns. The CPA is crucial as it helps businesses determine whether they spent their money well or are using the right strategy. The formula for Cost Per Acquisition is the advertising budget divided by the new number of customers. 

Updated February 17, 2024

Axel Grubba is the founder of Findstack, a B2B software comparison platform, with his background spanning management consulting and venture capital where he invested in software. Recently, Axel has developed a passion for coding and enjoys traveling when he is not building and improving Findstack.