CAC
Customer Acquisition Cost
The average cost of gaining a new customer over a defined period.
Plain English
How much it costs to win one customer.
In context
CAC typically divides attributable sales and marketing cost by newly acquired customers using consistent scope and timing.
Example
“Our CAC increased after entering the enterprise segment.”
When you'll hear this
- growth review
- budget planning
- strategy
Common misunderstanding
CAC is misleading when cost attribution or customer definitions change between periods.
Also known as
customer acquisition cost
Commonly used by
Related terms
Often compared with
Updated: 2026-08-25
