Customer Acquisition Cost Calculator Formula

Understand the math behind the customer acquisition cost calculator. Each variable explained with a worked example.

Formulas Used

Customer Acquisition Cost (CAC)

cac = new_customers > 0 ? total_marketing_spend / new_customers : 0

Customers Per $10,000 Spent

customers_per_10k = total_marketing_spend > 0 ? new_customers / total_marketing_spend * 10000 : 0

Variables

VariableDescriptionDefault
total_marketing_spendTotal Marketing & Sales Spend(USD)50000
new_customersNew Customers Acquired200

How It Works

How to Calculate Customer Acquisition Cost

Formula

CAC = Total Marketing & Sales Spend / New Customers Acquired

CAC should be measured over a consistent time period (usually monthly or quarterly). Include all sales and marketing costs: advertising, salaries, tools, events, and content creation.

Worked Example

A company spends $50,000 on marketing and sales in a quarter and acquires 200 new customers.

total_marketing_spend = 50000new_customers = 200
  1. 01CAC = $50,000 / 200 = $250 per customer
  2. 02Customers per $10,000 spent = 200 / $50,000 x $10,000 = 40 customers