CAC: Customer Acquisition Cost

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What does CAC mean? CAC stands for Customer Acquisition Cost and describes the costs that a company incurs to acquire a new paying customer. Where is CAC used? CAC is typically used in online and performance marketing to measure the efficiency of advertising campaigns and sales measures. What is a good CAC? A good CAC is highly industry-dependent, but is measured by whether the costs are in a reasonable relationship to the customer lifetime value (CLV). In many sectors, it ranges between 50 and 300 euros.

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CAC simply explained

Formula: How do you calculate the costs per customer?

  • CAC = marketing & sales costs / new customers

Example CAC

To calculate the costs per new customer, you need to take into account all marketing and sales expenses associated with the acquisition. You then divide the total costs by the number of customers acquired.

How to calculate the CAC

This is how you can calculate the Customer Acquisition Cost (CAC):

  • Marketing & sales costs: € 5,000
  • New customers acquired: 100
  • Formula: CAC = costs / new customers
  • Calculation: 5,000 € / 100 = 50 €
  • Result: The cost per new customer is €50

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