What is CAC?
CAC (customer acquisition cost) is the marketing and sales cost of winning one new customer.
Customer Acquisition Cost · Marketing Glossary · Updated
CAC is closer to reality when it includes not just ad spend but content production, agency fees and sales labor.
LTV needs to be comfortably larger than CAC for a business to grow. The industry often considers an LTV of three times CAC or more healthy.
Formula
CAC = marketing and sales costs ÷ new customers won
Related terms
