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CAC

Metrics beginner FOUNDERCMOCFO

What is CAC?

CAC is customer acquisition cost, the sales and marketing investment required to acquire customers.

Also known as: Customer Acquisition Cost

CAC Formula

Overall CAC = S&M Spend / New Customers
Variable Meaning
S&M Spend Sales and marketing spend.
New Customers Number of newly acquired customers.
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How to Calculate CAC

Worked example

S&M Spend
$50,000
New Customers
100
→ Overall CAC
$500

CAC Calculator

Try it with your numbers

Overall CAC$500
Overall CAC = S&M Spend / New Customers
Variable Meaning
S&M Spend Sales and marketing spend.
New Customers Number of newly acquired customers.

Worked example

S&M Spend
$50,000
New Customers
100
→ Overall CAC
$500

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Prefer a dedicated page? Use the CAC calculator.

Common Mistakes with CAC

  • Not knowing your unit economics (CAC, LTV, ARPA, ACV, churn, payback months) — teams that cannot quote these numbers under-invest in sales and marketing (typically 10-25% of revenue) and never master paid acquisition or outbound prospecting.

CAC vs Related Metrics

CAC FAQ

How do you calculate CAC?

Overall CAC = S&M Spend / New Customers

More questions? See the full CAC FAQ.

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