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CPA vs CAC: definitions, formulas, and how to use them

Stop mixing CPA and CAC. Learn definitions, compute CPA, and set break-even max CPA.

CPA vs CAC (plain English)

CPA is the cost per conversion in a channel (purchase/lead/signup — you must define it). CAC is the overall cost to acquire a customer, usually blended across all channels and costs.

Shortcut: CPA = campaign-level. CAC = business-level.

Compute CPA from CPM, CTR and CVR

Use: CPA Calculator.

Break-even CPA

Max CPA ≈ (AOV × (1 − refunds)) × (gross margin − fees)

FAQ

Is CPA the same as CAC?

No. CPA is usually channel cost per conversion; CAC is blended business cost per customer.

Include salaries in CAC?

For “true CAC”, include acquisition-related salaries/tools. For optimization, media CPA can still help.