The Ad Spend
← Blog
GlossaryAugust 31, 20252 min read

Customer Acquisition Cost (CAC)

CAC includes all acquisition costs, not just ads. SaaS $200-500, E-commerce $20-100. Compare to LTV.

By The Ad Spend
A meeting room with a colleague sipping coffee.

The total cost to acquire one new customer, including all sales and marketing expenses—not just ad spend.

Formula

Total S&M Spend ÷ New Customers

Benchmark range

SaaS: $200-500 typical. E-commerce: $20-100. B2B enterprise: $5,000+. Compare to LTV.

Why it matters

CAC differs from CPA. CPA = ad cost per conversion. CAC includes salaries, tools, content, everything. For accurate unit economics, calculate true CAC. If CAC rises while LTV stays flat, you have a problem.

Where it applies

  • All Platforms

Related terms

See how the engine works