Cost per Acquisition (CPA) is the amount you pay for one conversion — a sale, sign-up or defined action — from a specific campaign.
CPA = Total campaign spend ÷ Number of acquisitions (conversions)
Spend ₹50,000 and get 25 conversions and your CPA is ₹2,000. The ‘acquisition’ is whatever you define as the conversion — a purchase, a demo, a signup.
CPA is per campaign conversion; CAC is the all-in cost to win a paying customer across everything; CPL is the cost of a lead. CPA sits between — a defined action that may or may not be a full customer. Ad platforms optimise toward a target CPA.
CPA is the cost per defined conversion in a campaign (a sale, signup or action); CAC is the total, all-in cost of acquiring a paying customer across all sales and marketing. CAC is broader and usually higher.
It depends on the value of the conversion and your margins. A good CPA is comfortably below what that acquisition is worth to you. Judge it against revenue and lifetime value, not as a standalone number.
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