What makes a CPA "good"
A good CPA is one that allows your business to remain profitable after accounting for acquisition cost. There is no universal "good CPA" number — only whether your CPA is sustainable given your revenue per customer and gross margin.
Industry benchmarks give you market context — they tell you if you're paying more or less than typical for a customer in your vertical. But your internal unit economics should drive your CPA target, not the benchmark. A company with $500 LTV can sustain a $150 CPA. A company with $30 LTV cannot.
Calculate your maximum allowable CPA
For e-commerce: Max CPA = AOV × gross margin × (1 − overhead ratio)
Example: AOV $85, 40% gross margin, 30% overhead ratio → Max CPA = $85 × 0.40 × 0.70 = $23.80
For subscription / SaaS: Max CPA = LTV × target payback period ÷ avg contract length
Example: $1,200 LTV, 6-month payback target, 12-month average contract → Max CPA = $1,200 × (6/12) = $600
For lead generation: Max CPA = Revenue per closed deal × close rate × gross margin
Example: $5,000 deal value, 15% close rate, 60% margin → Max CPA = $5,000 × 0.15 × 0.60 = $450
CPA benchmarks by industry — 2026
| Industry | Meta CPA | Google Search CPA | LinkedIn CPA | Blended avg |
|---|---|---|---|---|
| Entertainment / Media | $12 | $22 | $150 | $18 |
| Consumer Goods | $22 | $38 | $210 | $30 |
| Travel & Hospitality | $32 | $55 | $280 | $44 |
| E-commerce / Retail | $28 | $45 | $320 | $38 |
| Education | $42 | $65 | $260 | $58 |
| Healthcare | $55 | $78 | $290 | $72 |
| Finance & Insurance | $62 | $88 | $380 | $78 |
| Legal Services | $72 | $96 | $450 | $86 |
| B2B / SaaS | $95 | $130 | $420 | $116 |
| Real Estate | $85 | $115 | $480 | $110 |
LinkedIn CPA appears very high vs Meta and Google. This reflects the platform's premium professional audience and B2B focus. LinkedIn leads carry significantly higher LTV in most B2B contexts — evaluate LinkedIn CPA against pipeline value, not in isolation vs other channels.
CPA by country
CPA varies significantly by market. US CPAs are the highest globally — driven by higher CPMs, stronger purchase intent, and more intense advertiser competition. India and Brazil offer 10–15× lower absolute CPAs, though lead quality and conversion-to-revenue rates require separate evaluation.
Country CPA benchmarks: USA · UK · Australia · Germany · France · Canada · UAE · India · Brazil
Frequently asked questions
What is a good CPA for Google Ads?
A good Google Ads CPA depends on your industry and margin structure. 2026 US benchmarks: e-commerce $45, B2B SaaS $130, finance $88, healthcare $78, legal $96. Your target CPA should be derived from your unit economics — see the max CPA formula above — with industry benchmarks as secondary context.
What is a good CPA for Meta ads?
Meta CPA tends to be 30–50% lower than Google Search CPA for the same industry — Meta reaches broader audiences at lower CPM, producing lower cost per click, while Google Search captures high-intent buyers at higher cost. 2026 Meta CPA benchmarks: e-commerce $28, B2B $95, finance $62.
Should I use CPA or ROAS as my primary metric?
Use ROAS for e-commerce (revenue per transaction varies, so cost efficiency must be measured against revenue). Use CPA for lead generation (leads have similar value, so cost per lead is the primary efficiency metric). For subscription businesses, use both: CPA measures acquisition efficiency, ROAS measures revenue return within a defined attribution window.
Is your CPA above or below industry average?
Check your CPA against the 2026 benchmark for your industry and platform.