What is a good CPA?
The quick version: a good CPA is any cost per acquisition that sits below your maximum CPA = AOV × gross margin. Hit a number under that ceiling and every new customer is profitable on the first order.
Like CPC, CPA has no universal "good" value. A $40 CPA is excellent for a business with an $80 order value and a 50% margin, and ruinous for one selling $25 products. The benchmark that matters is the one you calculate from your own numbers.
Your maximum CPA is the real benchmark
Maximum CPA is what one new customer can cost before you start losing money on the sale: AOV × gross margin. Find yours with the CPA & CAC calculator, then treat it as the ceiling every campaign has to beat. A "good" CPA is simply one with comfortable room underneath it.
CPA vs CAC, don't confuse them
CPA usually counts a conversion (a sale or lead), while CAC counts a paying customer and folds in all sales and marketing costs. They answer different questions, so judge each against its own ceiling. See CPA vs CAC for the full breakdown.
When a higher CPA is fine
If customers buy again, first-order math understates the truth. A CPA above your single-order ceiling can still be profitable once you account for repeat revenue, which is why the LTV:CAC ratio matters for any business with repeat purchases or subscriptions.
Common mistakes
- Borrowing someone else's CPA target. Their margin and order value are not yours.
- Optimizing CPA to the floor. The lowest CPA usually comes with the lowest volume and the least total profit.
- Ignoring repeat revenue. One-order math can make a healthy CPA look too expensive.
FAQ
What is a good CPA?
Any cost per acquisition below your maximum CPA (AOV × margin), with room to spare.
How do I calculate my maximum CPA?
Multiply your average order value by your gross margin. $80 AOV × 50% margin = $40 maximum CPA.
Is a lower CPA always better?
No, driving CPA too low usually caps volume. Aim for the most profit at scale, not the cheapest acquisition.