CAC (Customer Acquisition Cost)
CAC is the average cost of winning one new customer, including marketing and sales costs.
CAC adds up everything spent to acquire customers in a period and divides it by the number of new customers won. It is a key number for any business that pays for growth.
CAC is most useful next to lifetime value. A healthy business earns several times its CAC from each customer.
Formula
CAC = (Marketing spend + Sales costs) ÷ New customers
Example
A brand spends 15,000 and gains 250 new customers, so CAC is 60.
Try the tool
Common questions
Is CAC the same as CPA?
CPA counts any conversion; CAC counts new customers only.
What is a good LTV to CAC ratio?
A common target is 3:1 or higher.