CAC (customer acquisition cost)
What it costs, on average, to win one new customer.
Last reviewed 12 September 2026
Include everything that goes into winning the customer: ad spend, sales salaries, commissions, and the tools those people use.
CAC only means something next to LTV and payback period. A high CAC is fine if the customer stays for years.
Formula
CAC = Total sales & marketing spend ÷ New customers acquired
Frequently asked
What is cac (customer acquisition cost)?+
What it costs, on average, to win one new customer. Include everything that goes into winning the customer: ad spend, sales salaries, commissions, and the tools those people use. CAC only means something next to LTV and payback period. A high CAC is fine if the customer stays for years.
How do you calculate cac (customer acquisition cost)?+
CAC = Total sales & marketing spend ÷ New customers acquired
Why does cac (customer acquisition cost) matter for founders?+
CAC only means something next to LTV and payback period. A high CAC is fine if the customer stays for years.
Related terms
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