Handeware
Business

Cost per new customer

$80.00

This is arithmetic for general information, not financial advice.

Customer Acquisition Cost Calculator

Customer acquisition cost, or CAC, is what you spend to win one new customer. Enter the marketing and sales spend for a period, and how many new customers that spend brought in.

How it works

CAC is the total sales and marketing spend divided by the number of new customers won in the same period.

Include the costs that go toward winning customers, such as advertising, sales pay and promotions. Use the same period for both figures.

Worked example

Spending $12,000.00 to win 150 new customers works out to $80.00 for each one.

Questions

Which costs belong in the spend?

Advertising, sales pay, commissions and promotions are the usual ones. Be consistent, so the figure can be compared over time.

Does one month tell me enough?

Not always. Short periods can swing with a single campaign, so averaging over several months gives a steadier figure.

How do I use the number?

Compare it with what a customer is worth to you over time. The lifetime value calculator on this site can help with that.

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