CAC vs CPA
CAC is the fully loaded cost of turning a stranger into a paying customer, while CPA is the cost of getting one specific action, which is not always a sale. Every CAC is a kind of CPA, but not every CPA is a CAC.
CAC
The total amount of money a business spends to acquire a single new customer, including marketing, sales, and overhead costs.
CPA
The marketing cost to acquire one paying customer or drive a specific desired action like a signup or download.
| What counts as the action | A new paying customer | Any defined action (signup, lead, purchase, download) |
|---|---|---|
| Scope of costs included | Usually all sales and marketing costs | Usually just the spend on the specific campaign |
| Best used for | Judging if your business model is sustainable | Judging if one campaign or channel is efficient |