Total sales and marketing cost divided by new customers acquired in the period. CAC is broader than CPA. It includes salaries, tools, creative, and every channel alongside media, and it counts customers rather than conversions. The CAC to LTV ratio is the standard test of whether growth spending is sustainable.
Used in The Signal
Cite this entry:
Agency Echelon. "CAC." Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/glossary/cac/