User Acquisition Cost (UAC)

What is User Acquisition Cost (UAC)?

User Acquisition Cost (UAC) is the total cost incurred by a company to acquire a new customer. This includes marketing expenses, sales efforts, and any other related costs. UAC is a critical metric for startups to understand the efficiency of their growth strategies and the sustainability of their business model.

Calculating User Acquisition Cost

• Total Cost: Sum of all expenses associated with acquiring users, including advertising, sales, and promotions.
• Number of Acquisitions: The total number of new customers acquired during a specific period.
• Formula: UAC = Total Cost of Acquisition / Number of New Users Acquired.

Related Terms and Concepts

Customer acquisition cost (CAC), lifetime value (LTV), growth metrics, return on investment (ROI)