Divide marketing spend by new customers acquired to get CAC.
Overview
CAC (customer acquisition cost) is how much you spend in sales and marketing to win one new customer.
Enter marketing (and optionally sales) spend and new customers in the same period. CAC = spend ÷ new customers.
Fully loaded CAC may include salaries and tools; keep the definition consistent when you trend the metric.
Steps
Acquisition spend for the period.
Customers acquired in that period.
Review CAC.
Compute CAC per channel when possible.
Check whether payback and LTV:CAC look healthy.
Math
CAC = marketingSpend / newCustomers
Average acquisition cost is total spend divided by new customers won.
Worked cases
25,000/120 ≈ $208.33
About $208 CAC.
25,000/200 = $125
$125 CAC.
40,000/100 = $400
$400 CAC.
Why use this
Questions