# Customer acquisition cost (CAC)

The acquisition costs included in a calculation divided by the number of new customers acquired.

The acquisition costs included in a calculation divided by the number of new customers acquired.

## An example

A team spends $5,000 on sales and marketing to acquire 50 customers, giving a CAC of $100.

## Why it matters

Declare which expenses and customer cohort are included. CAC is broader than an ad platform's cost per conversion.


## Related terms
- [Attribution](https://jolts.xyz/resources/glossary/attribution)
- [Attribution window](https://jolts.xyz/resources/glossary/attribution-window)
- [Conversion](https://jolts.xyz/resources/glossary/conversion)
- [Conversion tracking](https://jolts.xyz/resources/glossary/conversion-tracking)

## Next step

[Explore advertising](https://jolts.xyz/advertisers) or [monetize your AI app](https://jolts.xyz/publishers).