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Startup Metric

CAC: Customer Acquisition Cost

How to calculate customer acquisition cost and use it to understand marketing and sales efficiency.

Core formula

CAC = total acquisition cost ÷ new customers

SECTION 01

Definition

The useful way to interpret definition is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 02

Formula

The useful way to interpret formula is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 03

Example

The useful way to interpret example is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 04

What counts as acquisition cost

The useful way to interpret what counts as acquisition cost is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 05

Blended vs channel CAC

The useful way to interpret blended vs channel cac is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 06

Common mistakes

The useful way to interpret common mistakes is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 07

How to reduce CAC

The useful way to interpret how to reduce cac is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 08

Related metrics

The useful way to interpret related metrics is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

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