Entrepreneurship & Startup → Startup Finance & Accounting → Unit Economics → CAC

Overview

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer. It includes expenses like marketing, sales, and any other costs related to getting customers. Understanding CAC helps startups manage their budgets and determine how much they can spend to gain new customers while remaining profitable. By analyzing CAC, businesses can improve their strategies and make better financial decisions.

📚 Key Learning Objectives

  • Define Customer Acquisition Cost (CAC) clearly.
  • Calculate CAC using real business examples.
  • Analyze the impact of CAC on startup profitability.
  • Compare CAC with Customer Lifetime Value (CLV).
  • Identify strategies to reduce CAC effectively.