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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionCustomer Acquisition Cost (CAC)

Measurement & Attribution

Customer Acquisition Cost (CAC)

The total cost to acquire one new customer.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Customer acquisition cost (CAC) is the total cost to acquire one new customer, calculated by dividing sales and marketing expenses by the number of new customers gained over a period. It is a core measure of growth efficiency and is often compared with customer lifetime value to judge whether acquisition spending is sustainable.