Quick answer
Customer acquisition cost quick answer
Answer: Customer acquisition cost (CAC) is the average acquisition spend required to generate one new customer.
Formula: CAC = sales and marketing acquisition spend ÷ new customers acquired.
Example: $5,000 of acquisition spend that produces 125 new customers equals a $40 CAC.
Reviewed September 1, 2026 · Methodology
Worked example
$5,000 of acquisition spend generating 125 new customers produces a $40 CAC.
What to do with the result
Compare CAC with contribution from a new customer, not just first-order revenue.
Frequently asked questions
What costs should be included in CAC?
Use the marketing and sales costs you want the metric to represent and keep the scope consistent between periods.
Is CAC the same as cost per order?
No. A returning customer can place an order without being newly acquired.