Customer Acquisition Cost
Also called: CAC, cost per acquisition, blended CAC
CAC is total sales and marketing spend divided by new customers acquired in a period. The honest version is fully loaded — salaries, tools, commissions, not just ad spend — and separates paid from organic, since blending them hides a paid channel that doesn't work. CAC payback period, the months of gross profit needed to recover it, is now watched more closely than the LTV/CAC ratio.
Formula
CAC = Sales & marketing spend ÷ New customers acquired