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The average cost to acquire a new customer, calculated by dividing total ad spend by the number of new customer orders.

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Formula

Customer Acquisition Cost = Total Ad Spend ÷ New Customer Orders

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Formula Components

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Example

Your store had 312 new customer orders in January with a total ad spend of $15,600: A $50 CAC means you spend $50 on average to acquire each new customer.

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How It Works

CAC divides your total advertising spend by the number of new customer orders in the period. Upstack flags only a customer’s first order as a new customer order, so each new customer counts once and later orders from the same person don’t lower CAC. Unlike Blended CPA, which divides spend by every purchase the ad platforms report, CAC only counts first orders.

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When to Use

See all Performance metrics →