CAC — Customer Acquisition Cost

Definition

The fully loaded sales & marketing cost required to win one new customer: ads + content + tools + S&M salaries and commissions.

Formula

CAC = Total S&M spend in period / New customers in period

Worked Example

Q2 spend:

Paid ads               $36,000
Content/SEO agency      $9,000
Sales salaries (2)     $30,000
                       -------
Total S&M              $75,000
New customers:             500

CAC = $75,000 / 500 = $150

Interpretation & Pitfalls

Counting only ad spend ($36,000/500 = $72) flatters CAC by half. Include people. Always.

In TupicFinance

Marketing campaign costs — including Pay Later liabilities — roll into CAC on the dashboard.