Calculate your cost per acquisition (or cost per action), and check it against your target CPA.
Frequently Asked Questions
How do you calculate cost per acquisition (CPA)?
CPA = Total ad spend / Number of acquisitions (sales, sign-ups, or other conversion actions). Spending $2,000 for 40 conversions gives a $50 CPA.
What is a good CPA?
A good CPA is one that's comfortably below the profit or lifetime value you get from each customer — it varies enormously by industry and average order value.
What is the difference between CPA and CAC?
CPA (Cost Per Acquisition) usually refers to ad spend per conversion, while CAC (Customer Acquisition Cost) is a broader business metric including all sales and marketing costs, not just ad spend.