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Mobius

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

CAC (customer acquisition cost) is what you spend on marketing and sales to win one new customer: a period's spend divided by the new customers it brought.

CPA

CPA (cost per acquisition) is what you pay on average for one conversion you chose to count, such as a booking or a sale: spend divided by those conversions.

CAC, What counts as the action:

A new paying customer

CPA, What counts as the action:

Any defined action (signup, lead, purchase, download)

CAC, Scope of costs included:

Usually all sales and marketing costs

CPA, Scope of costs included:

Usually just the spend on the specific campaign

CAC, Best used for:

Judging if your business model is sustainable

CPA, Best used for:

Judging if one campaign or channel is efficient

What counts as the actionA new paying customerAny defined action (signup, lead, purchase, download)
Scope of costs includedUsually all sales and marketing costsUsually just the spend on the specific campaign
Best used forJudging if your business model is sustainableJudging if one campaign or channel is efficient