CAC: Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the total cost—including marketing, sales, and overhead—required to convince a potential customer to buy a product or service.
While CPA looks at specific ad actions, CAC looks at the big picture of your entire business growth strategy.
Calculation: (Marketing Costs + Sales Costs) / Number of New Customers = CAC
Example: €5,000 total marketing and sales cost and 50 new customers equals €100 CAC.
Frequently Asked Questions
Beyond ad spend, you should include the salaries of your marketing and sales teams, software subscriptions (CRM), and creative production costs.
CPA measures the cost of a lead or a single sale from an ad. CAC measures the total cost of acquiring a long-term paying customer across all channels.
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