Canonical URL: https://chargezen.com/glossary/customer-acquisition-cost

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.

### Related Terms

[

ROAS

Revenue



](https://chargezen.com/glossary/roas)

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### More Revenue Terms

[View all Revenue definitions](https://chargezen.com/glossary?category=Revenue)

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