CPA — Cost Per Acquisition
Definition: The total marketing cost to acquire one paying customer. CPA is the number that decides whether your paid acquisition is a growth engine or a slow bleed — it must stay meaningfully below LTV.
Example
Our CPA needs to stay under $80 on a $240 LTV — anything higher and the unit economics break.
When you'll hear it
CPA shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to cost per acquisition — and they expect the room to already know what that means.
FAQs
What does CPA stand for?
CPA stands for Cost Per Acquisition.
What does CPA mean in business and finance?
The total marketing cost to acquire one paying customer. CPA is the number that decides whether your paid acquisition is a growth engine or a slow bleed — it must stay meaningfully below LTV.
Where will I hear CPA used at work?
CPA comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for cost per acquisition, so people assume you already know the term.
Related terms
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