Lead acquisition cost (LAC) represents the total marketing and sales expenses required to acquire a new lead. This includes advertising spend, content marketing costs, sales outreach, and operational expenses. Businesses calculate LAC by dividing total lead generation expenses by the number of leads acquired within a given timeframe. Lowering LAC while maintaining lead quality is key to maximizing ROI. Companies optimize acquisition costs through targeted campaigns, improved lead qualification, and automation. Tracking LAC ensures better budget allocation and more sustainable growth.