What is the difference?

CAC vs COGS

Customer Acquisition Cost

Cost Of Goods Sold

What is it?

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.

The Cost Of Goods Sold (COGS) is the measure of costs incurred by a company to manufacture or resell a product. Costs typically include raw material and direct labour, but this varies from business to business, depending on the products or services that are being sold. COGS is the building block to understanding Gross Margin and Gross Margin Percent.