Influencer Marketing Glossary | Terms & Definitions

Customer Acquisition Cost (CAC)

Written by Theo Zyla | Feb 11, 2026, 7:54:10 PM

Customer Acquisition Cost (CAC) measures the total cost of acquiring a new customer, including all marketing and sales expenses. It helps businesses understand how efficiently they are converting spend into actual customers.

Calculation: CAC = Total Sales & Marketing Costs ÷ Number of New Customers Acquired

Example: A brand spends $10,000 on marketing and sales efforts in one month and gains 200 new customers. The CAC is $50.