Customer Acquisition Cost Calculator (CAC)
The Customer Acquisition Cost (CAC) is a metric used to determine the total average cost your company spends to acquire a new customer.
Why is it Important to Know CAC?
- •Gives an idea of the average total cost spent on acquiring a new customer.
- •Throws light on the efficiency of your sales and marketing efforts.
- •Keeps a tab on your sales and marketing spend because an increase in CAC indicates there is an underlying problem.
Calculate Your CAC
Calculate and track your customer acquisition costs to optimize your marketing spend
Input Values
Results
Customer Acquisition Cost
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per customer
How to Calculate Customer Acquisition Cost
Calculating Customer Acquisition Cost (CAC) involves determining the total cost of acquiring new customers over a specific period. This includes all marketing and sales expenses. The formula for calculating CAC is:
CAC = Total Marketing and Sales Expenses ÷ Number of New Customers Acquired
Example Calculation
Suppose your company spends $50,000 on marketing and sales in a quarter and acquires 500 new customers. The CAC would be calculated as follows:
CAC = $50,000 ÷ 500 = $100
This means it costs your company $100 to acquire each new customer. Understanding this cost helps in optimizing marketing strategies and improving ROI.
Frequently Asked Questions
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