Business & Commerce
Intermediate

Customer Acquisition Cost (CAC)

The average cost to win one new customer.

Formula

CAC=Sales & Marketing CostNew CustomersCAC = \dfrac{Sales\ \&\ Marketing\ Cost}{New\ Customers}

Variables

CACAcquisition cost per customer
CostSales & marketing spend
New CustomersCustomers gained

Example

$50k spend / 500 customers = $100 CAC

Did You Know?

A healthy SaaS rule of thumb is a lifetime-value to CAC ratio of at least 3 to 1.

cacmarketinggrowth