Customer Acquisition Cost. The total marketing spend divided by the number of new customers acquired in the same period.
CAC = Total Marketing Spend / New Customers Acquired. For D2C brands, a sustainable CAC is typically no more than 30-40% of Customer LTV. If your LTV is $120 and your CAC is $60, you have a healthy 2× LTV:CAC ratio — though most investors want to see 3× or better. Always calculate CAC by channel separately (Meta CAC vs Google CAC) to understand where acquisition is most efficient.
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