> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# CAC: Customer Acquisition Cost

> Track your Customer Acquisition Cost (CAC) to understand how much you spend to acquire each new customer. Optimize marketing efficiency and improve profitability.

<Tip>
  The average cost to acquire a new customer, calculated by dividing total ad spend by the number of new customers.
</Tip>

## Formula

<Info>
  **Customer Acquisition Cost** = **Total Ad Spend** ÷ **New Customers**
</Info>

### Formula Components

| Metric                                                                                  | Definition                                                 |
| --------------------------------------------------------------------------------------- | ---------------------------------------------------------- |
| [**Blended Spend**](/reference/metrics/advertising/blended/blended-spend/blended-spend) | Sum of advertising costs across all connected ad platforms |
| [**New Customers**](/reference/metrics/orders/customers/new-customers)                  | Count of unique first-time buyers in the period            |

| Metadata        |                                                                                                                                  |
| --------------- | -------------------------------------------------------------------------------------------------------------------------------- |
| **Type**        | Currency                                                                                                                         |
| **Data Source** | [Meta Ads](/sources/facebook-ads), [Google Ads](/sources/google-ads), [TikTok Ads](/sources/tiktok), [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                                                                                                                            |

***

## Example

Your store acquired **312 new customers** in January with a total ad spend of **\$15,600**:

| Metric         | Value       |
| -------------- | ----------- |
| Total Ad Spend | \$15,600    |
| New Customers  | 312         |
| **CAC**        | **\$50.00** |

A \$50 CAC means you spend \$50 on average to acquire each new customer.

***

## How It Works

CAC divides your total advertising spend by the number of unique new customers acquired during the period. Unlike CPA (Cost Per Acquisition), which measures cost per order, CAC focuses specifically on customer-level acquisition—counting each person once regardless of how many orders they place.

***

## When to Use

| Scenario                          | Action                                                                       |
| --------------------------------- | ---------------------------------------------------------------------------- |
| Evaluating acquisition efficiency | Compare CAC to customer lifetime value (LTV)                                 |
| Budget planning                   | Set target CAC based on first-order margins                                  |
| Channel comparison                | Identify which platforms acquire customers most efficiently                  |
| Profitability analysis            | Ensure CAC stays below first-order profit to maintain healthy unit economics |

***

## Related Metrics

| Metric                                                                               | Relationship                                                |
| ------------------------------------------------------------------------------------ | ----------------------------------------------------------- |
| [LTV](/reference/metrics/orders/ltv/ltv)                                             | Customer lifetime value—compare to CAC for payback analysis |
| [Blended CPA](/reference/metrics/advertising/blended/blended-efficiency/blended-cpa) | Cost per conversion (orders, not customers)                 |
| [New Customers](/reference/metrics/orders/customers/new-customers)                   | Denominator for CAC calculation                             |
| [Blended Spend](/reference/metrics/advertising/blended/blended-spend/blended-spend)  | Numerator for CAC calculation                               |

[See all Performance metrics →](/reference/metrics/orders/performance)