CAC (Customer Acquisition Cost)
Total marketing + sales spend divided by new customers acquired in the period.
Last updated: 2026-05-04
Definition
CAC = (marketing spend + sales spend) / new customers. Most teams calculate it badly (omitting sales salaries, including renewals as "new"). Compute it strictly: only first-time buyers count, only the spend that drove acquisition counts (not retention spend). Compare to LTV — payback < 12 months is the SaaS rule of thumb.
How it applies in India
Indian D2C CAC ranges ₹400-₹800 for SMBs depending on category; B2B SaaS CAC ranges ₹15K-₹50K.
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