CAC
metricsCustomer Acquisition Cost
Definition
The total cost to acquire a new customer, including all marketing and sales expenses.
How to Calculate CAC
Total Acquisition Costs ÷ New Customers Acquired
Example
Scenario: You spend $15,000 on marketing and acquire 300 customers
Calculation: $15,000 ÷ 300 = $50 CAC
What's a Good CAC?
Should be recovered within 3-12 months depending on business model
Common Mistakes
- Only including ad spend without factoring in other acquisition costs
- Not segmenting CAC by channel and customer quality
💡 Expert Tip
Blended CAC across all channels is often 30-50% higher than paid channel CAC alone. Include organic, referrals, and overhead.
— Based on $100M+ in managed ad spend
Related Terms
By Kristijan Arapov • Based on $100M+ in managed ad spend • Updated 2026