What Is CAC? Customer Acquisition Cost Explained
Learn how to calculate CAC and why it should be compared with contribution-margin LTV.
CAC = acquisition and sales spend ÷ new customers
$6,000 in acquisition spend and 120 new customers = $50 CAC.
Why this term matters
CAC becomes useful when you connect it to the next business question. Pair it with the right denominator, time range and outcome; never optimize a single number without checking the quality of the underlying traffic or profit.
References and methodology
We use primary documentation where available and treat calculators as planning aids, not guarantees. Check the linked source when a platform changes its rules.
- Shopify: Customer acquisition cost
Practical ecommerce explanation.
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