Business
Customer Acquisition Cost Calculator
Find what each new customer costs by dividing sales and marketing spend by new customers gained.
The result is the average cost of gaining one new customer, shown as cost per new customer in dollars.
Formula
Customer acquisition cost = total sales and marketing spend divided by the number of new customers gained in the same period.
How it works
Add up what was spent to win customers, including ads, tools and relevant staff time, then divide by how many new customers arrived. Compare the result with what each customer is worth: if acquiring a customer costs more than they bring in, the marketing needs fixing.
Worked example
For example, $5,000 of sales and marketing spend divided by 50 new customers gives a cost of $100 per new customer.
FAQs
Which spend counts?
Everything spent to attract and convert new customers in that period, not spending on serving existing ones.
Over what period?
Use the same period for spend and customer count, for example one month or one campaign.
What is a good CAC?
It depends on customer value. The key test is whether lifetime value comfortably exceeds acquisition cost.
Estimates only, not financial advice. Check your figures before making a business decision.
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