Measures how much it costs to acquire one customer.
Product ManagementCAC = Total sales and marketing spend ÷ Number of new customers.
CAC = Total sales and marketing spend ÷ Number of new customers.
Customer Acquisition Cost (CAC) measures the total spend on marketing and sales to acquire a single new customer. It helps assess the efficiency and scalability of go-to-market strategies. CAC is a critical metric when paired with LTV to evaluate business sustainability.
Lower CAC with high LTV leads to stronger unit economics.
Join thousands of professionals preparing for interviews together. Book free Peer to Peer Mock Interviews and get personalized feedback.