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What Is CAC (Customer Acquisition Cost)?

Customer Acquisition Cost (CAC) the total cost to acquire one new customer, including all marketing, advertising, and sales expenses divided by the number of new customers gained.

How Dashboardly Tracks CAC

Dashboardly calculates CAC from your live TikTok Shop data — pulling actual orders, fees, refunds, and returns so the number you see matches your P&L.

  • Actual order revenue — not estimated or attributed revenue
  • Refunds and returns deducted automatically
  • All platform fees included for profit-level accuracy
  • Historical trends so you spot changes before they hit profit

Frequently asked questions

What is a good CAC?

TikTok Shop: $8-25 organic, $15-40 paid ads. Amazon: $25-50. Shopify DTC: $30-80. Healthy CAC:LTV ratio is 1:3+.

How do I calculate CAC?

CAC = Total Marketing & Sales Spend / Number of New Customers Acquired

Why is my CAC different from what TikTok Shop reports?

TikTok's native reports use attributed metrics with click- and view-through windows. Dashboardly calculates CAC from actual order revenue, deducting refunds and returns for a truer number that matches your real P&L.

When should I track CAC?

CAC is a leading indicator — check it daily if you're running ads or running pricing experiments, weekly otherwise. Dashboardly tracks CAC automatically so you don't have to pull exports.

Related tools & resources

See how CAC works in practice in Customer Lifetime Value Strategies for TikTok Shop: Complete 2026 Guide.

The total cost to acquire one new customer, including all marketing, advertising, and sales expenses divided by the number of new customers gained.
Definition

The total cost to acquire one new customer, including all marketing, advertising, and sales expenses divided by the number of new customers gained.

Formula

CAC = Total Marketing & Sales Spend / Number of New Customers Acquired

Example Calculation

$3,000 ads + $1,000 affiliate commissions = $4,000 spend / 200 new customers = $20 CAC

Benchmarks for TikTok Shop Sellers

TikTok Shop: $8-25 organic, $15-40 paid ads. Amazon: $25-50. Shopify DTC: $30-80. Healthy CAC:LTV ratio is 1:3+.

Why It Matters for TikTok Shop Sellers

The total cost to acquire one new customer, including all marketing, advertising, and sales expenses divided by the number of new customers gained.

Related Terms

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