CAC ( Customer Acquisition Cost) is calculated by adding up everything you spend to attract new customers and dividing that total by the number of new customers you acquired.

It includes advertising, first-purchase promotions, tools, and—if you want the full picture—part of the cost of your marketing team.

Why does it matter?

The CAC tells you whether your growth is sustainable. Acquiring customers is only worthwhile if what they bring in over time exceeds what it cost you to attract them.

That's why CAC is analyzed alongside LTV (customer lifetime value). If a customer costs you $30 and brings in $20, every new customer causes you to lose money. The solution isn't just to lower CAC—you can also encourage each customer to return and increase their value.

How is it calculated?

Formula: CAC = Total acquisition investment for the period / Number of new customers for the period.

For example, if you spend $10,000 on customer acquisition in a month and gain 400 new customers, your CAC is 10,000 / 400 = $25.

Story mode

An online sports store invests in ads to attract new customers, and each one costs about $25. Many customers make only one purchase, resulting in a small profit margin. The store sets up a post-purchase and repeat-purchase funnel for those new customers. As more customers make a second purchase, the same CAC becomes profitable.

How to Use It with Data4Sales

• New customers identified: The lifecycle breaks down first-time buyers so you can see how many you have in each period.
• Predictive LTV: Data4Sales predicts the future value of customers to compare the cost of acquiring them with the value they can generate.
• Lookalike using your own data: Synchronize audiences with Meta Ads and Google Ads to find people similar to your best customers.
• Repeat Purchase Workflows: Automate post-purchase follow-up to achieve a faster return on investment.

Related terms

• LTV
• CPA
• New customers
• Total advertising investment