Revenue
Customer acquisition cost
Customer acquisition cost (CAC)
The average amount you spend to win one new customer, including ads, discounts and marketing costs.
Formula
CAC = Total acquisition spend ÷ New customers acquired
Example
If you spend $10,000 on ads and win 200 customers, your CAC is $50.
Why Customer acquisition cost Matters
Compare CAC with customer lifetime value. Subscriptions raise lifetime value, which lets you afford to win customers profitably.
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