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Growth

What is CAC (Customer Acquisition Cost)?

The total sales and marketing cost to win one new customer.

CAC = sales & marketing spend ÷ new customers. Compare it with LTV and track it by channel.

Example

₹1 lakh spend ÷ 200 customers = ₹500 CAC.

Go deeper · Founder Playbook, Level 3Unit economics: CAC, LTV and contribution margin in rupees →

Related terms

LTV (Lifetime Value)Unit economicsCAC payback period

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