Cost Per Acquisition or CPA is a metric used by the marketing departments of companies to estimate the aggregate cost of acquiring a customer through a campaign. CPA helps companies measure their marketing success.
CPA is calculated as the cost of a campaign / number of conversionsSuppose Vareto runs an online campaign for its latest service offering for SaaS companies. The budget for this campaign is $500. Once the campaign ends, Vareto has 20 sales. CPA for this campaign = 500 / 20 = 25 or CPA = $25. This means each of the sales/acquisitions cost Vareto $25.