Customer Acquisition Cost (CAC) is the average cost of acquiring one new customer, calculated as total marketing and sales spend divided by the number of new customers acquired in a given period.
CAC = (Marketing spend + Sales spend) ÷ New customers
Marketing: $5,000 · Sales: $3,000 · New customers: 40
CAC = 8,000 ÷ 40 = $200
Calculate it yourself
Use the LTV & CAC calculator.