GlossaryCustomer Acquisition Cost
CACStartup Metrics

Customer Acquisition Cost

(CAC)

Definition

The total cost of acquiring a single paying customer, including all sales and marketing expenses. CAC = Total Sales + Marketing Spend ÷ New Customers Acquired in that period.

Why founders care

If your CAC is ₹10,000 and your LTV is ₹8,000, you're losing money on every customer. Know your CAC before scaling any marketing spend.

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