How to Calculate Customer Acquisition Cost (CAC) for B2C Apps

As user acquisition gets more expensive and growth budgets tighten, one metric keeps coming up in boardrooms, pitch decks, and marketing stand-ups: Customer Acquisition Cost. Often shortened to CAC, this single number can quietly reveal whether a B2C app is building something sustainable or simply buying growth that won’t last.

Why Everyone Is Talking About CAC Right Now

Not long ago, growth for consumer apps was relatively cheap. Install ads worked, targeting was precise, and scale came fast. That reality has changed. Between platform privacy updates, increased competition, and rising ad prices, acquiring users now costs significantly more than it did just a few years ago. As a result, founders, marketers, and investors are paying much closer attention to how much each new customer actually costs. That’s where CAC comes in.

So, What Is Customer Acquisition Cost?

Customer Acquisition Cost is exactly what it sounds like: the total amount of money you spend to acquire one customer.

Not an install.
Not a sign-up.
A real customer is someone who pays or completes a meaningful action in your app. In simple terms, CAC helps answer a basic but critical question: Are we spending our money wisely to grow this app?

The Simple CAC Formula (No Overthinking)

At its most basic level, CAC is calculated like this: CAC = Total acquisition costs ÷ New customers acquired

Simple, yes but only if the inputs are accurate.

First Things First: Define “Customer”

This is where many B2C apps get it wrong. If you’re counting:

  1. App installs
  2. Free users
  3. Trial users who never convert

You’re not calculating CAC, you’re guessing. For most B2C apps, a customer should mean:

What Costs Should Be Included in CAC?

CAC isn’t just ad spend. To get a realistic number, you need to include everything that supports acquisition, such as:

If a cost exists because you’re trying to grow users, it belongs in CAC.

Pick a Time Frame and Stick to It

CAC only makes sense when measured over a defined period:

Switching time frames mid-analysis can make healthy numbers look bad or hide real problems. Consistency matters.

A Real-World Example

Let’s say a B2C app spends:

The calculation is straightforward:

CAC = €40 per customer

That €40 becomes a key benchmark for future decisions.

Going Deeper: CAC by Channel

As apps mature, a single CAC number isn’t enough.

Strong teams break CAC down by channel:

This reveals which channels are actually working and which ones are quietly draining the budget. Attribution platforms like AppsFlyer, Adjust, and Branch are often used to support this level of analysis.

CAC Alone Isn’t the Full Story

A high CAC isn’t automatically bad. What matters is what you get back. That’s why CAC is almost always paired with Customer Lifetime Value (LTV) the total revenue a customer generates over time.

A common rule of thumb:

If that balance isn’t there, scaling becomes risky very quickly.

Common CAC Mistakes to Watch Out For

Even experienced teams fall into traps, including:

Small miscalculations can lead to big strategic mistakes.

Why CAC Discipline Matters More Than Growth Alone

In today’s market, growth without efficiency is no longer impressive.

The B2C apps that succeed are the ones that:

CAC isn’t just a finance metric it’s a reality check for the entire business. And in a crowded app economy, reality checks are more valuable than ever.

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