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Marketing

CAC

Customer Acquisition Cost

The average amount you spend to win one new paying customer — all your marketing and sales costs divided by how many customers that money brought in.

Example

If you spend ₹1,00,000 on ads and sales in a month and get 50 customers, your CAC is ₹2,000.

Formula

CAC = Total Sales & Marketing Spend ÷ New Customers Acquired

Related terms

ROAS
How much revenue each rupee of advertising brings back. A ROAS of 4 means ₹4 earned for every ₹1 spent.
CPA
What it costs, on average, for one desired action from an ad — like a sign-up, download or sale. Similar to CAC but usually measured per campaign or action.
LTV
The total money you expect to earn from one customer over the whole time they stay with you.
CAC Payback Period
How long it takes to earn back the money you spent acquiring a customer. Shorter is better — you recover cash faster.

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