What is CAC (Customer Acquisition Cost)?
Customer acquisition cost (CAC) is the average amount you spend on marketing to win one new customer.
By Abdullah Ashraf · Last updated: October 2026
Example for a UK store
If you spend £1,000 on ads and gain 50 new customers, your CAC is £20.
Why it matters
Comparing CAC with lifetime value shows whether your marketing is profitable.
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