Quick definition · 2 min Builder & startup term
CAC
CAC (customer acquisition cost) is how much you spend, on average, to get one new paying customer.
Think of it like
The price of the fishing trip per fish caught. Spend too much per fish and the trip loses money.
Example
Spend 1,000 dollars on ads and get 20 customers, and your CAC is 50 dollars each.
Why it matters
CAC versus what a customer is worth decides if a business is healthy. Every founder watches it.
Where you’ll see it
marketingstartup finance
Related terms