Customer Acquisition Cost Calculator – CAC Calculator

The customer acquisition cost, or CAC, is the money needed to acquire a single customer. In general, the cost required for a business to serve a customer is the cost necessary to deliver the service or product, which is the cost of sales and marketing. The higher the customer acquisition cost, the less efficient the business is.

Now, let's look at how to calculate the CAC.

To understand the CAC calculation, let's look at the company Alpha with the information below:

• Cost of marketing: $1,000;
• Cost of sales: $12,000; and
• Number of new customers: 1,000.

There are three steps you need to take to calculate the customer acquisition cost:

1. Determine the cost of marketing.

   The first step is to determine the cost of marketing. In this example, the cost of marketing is $1,000.

   To understand more about marketing, please check out our online marketing conversion calculator.

2. Determine the cost of sales.

   Next, you need to compute the cost of sales. This is the cost required to deliver the service or products. The cost of sales for Alpha is $12,000.

3. Determine the number of new customers.

   Then, we need to determine the number of new customers acquired during the period. For this example, the number of new customers is 1,000.

4. Calculate the customer acquisition cost.

   The last step is to calculate the CAC using the customer acquisition cost formula below:

   CAC = (cost of marketing + cost of sales) / number of new customers

   For Alpha, the CAC is ($1,000 + $12,000) / 1,000 = $13.