What is Customer acquisition cost (CAC)?
Customer acquisition cost (CAC) is the average amount you spend on sales and marketing to win one new paying customer over a given period.
Formula
CAC = total sales and marketing spend in a period ÷ new customers won in that period
Example
You spend $6,000 on ads and $4,000 on a part-time salesperson in one quarter and win 50 customers. Your CAC is $10,000 ÷ 50 = $200.
Why it matters for early-stage founders
CAC tells you whether growth is affordable. Compared with lifetime value, it shows whether each new customer makes or loses money.
The common mistake
Counting only ad spend and leaving out salaries, tools and founder time. That makes channels look cheaper than they are.
Know what a customer is worth
solvee helps you check whether your channels and price add up to a healthy business.
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Reviewed October 12, 2026