What is it?
CAC is the average cost to acquire one new customer through sales and marketing.
Unit economics
Customer acquisition cost (CAC)
CAC is the average cost to acquire one new customer through sales and marketing.
Divide total sales and marketing spend for a period by new customers acquired in that same period.
Customer acquisition cost (CAC)
Inputs
Results
CAC
—
Guide
Make CAC explicit
Why it matters
If CAC stays above lifetime value, growth is not sustainable — even when top-line sales look strong.
How it works
Divide total sales and marketing spend for a period by new customers acquired in that same period.
Formula CAC = Sales & marketing spend ÷ New customers
Go deeper
Why you’ll love this
CAC is the average cost to acquire one new customer. Without it you cannot judge growth budget or model health.
How to jump in
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Enter period spend
Total sales and marketing cost for a defined window.
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Add new customers
Customers acquired in that same window.
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Read CAC
Average cost per new customer updates live.
What you walk away with
- Fast and simple
- Clear guide copy
- IRR/USD
- Links to LTV and LTV/CAC
Where it shines
Growth budget
Set a sensible ceiling for channel spend.
Channel comparison
Measure CAC per acquisition channel.
Prepare LTV/CAC
Feed the result into the LTV/CAC ratio tool.
Quick answers
What costs belong in CAC?
Ads, sales commissions, growth tools, and direct acquisition costs for the same period.
Monthly or quarterly?
Either works — keep spend and customers aligned to the same window.