What is CAC (Customer Acquisition Cost)?
The total sales and marketing cost to win one new customer.
CAC = sales & marketing spend ÷ new customers. Compare it with LTV and track it by channel.
Example
Go deeper · Founder Playbook, Level 3Unit economics: CAC, LTV and contribution margin in rupees →₹1 lakh spend ÷ 200 customers = ₹500 CAC.