CPA (cost per acquisition)
Also called: cost per action, cost per purchase, CAC
CPA is what you spend on ads, on average, to get one conversion such as a purchase, signup or install.
Formula
CPA = ad spend ÷ conversions
CPA is the number most businesses manage to, because it compares directly with what a customer is worth. The break-even CPA for a single purchase is your gross profit per order; anything above that loses money on the first sale unless customers come back.
Go deeper
Part of the Addy video ad glossary. Addy is an AI agent that writes, renders and posts short-form video ads.