200 is the example result. Customer acquisition cost needs newly acquired paying customers as its population. Counting unqualified form submissions answers a different question.
Customer acquisition cost (CAC) measures the marketing and sales spend associated with each new customer in the period you define. Enter paying customers rather than clicks or form submissions when measuring customer acquisition.
Define included acquisition costs
Decide whether spend covers media alone or also includes sales labour, agency work and software. Keep that scope consistent between periods. A media-only figure and a fully loaded acquisition cost are different measures even when both use the same customer count.
Account for the sales cycle
Spending this month may produce customers in a later month. A simple period-based ratio does not attribute every expense to the customers it created. Use cohort analysis when that delay materially affects the decision (group customers by when their acquisition process began).
Connect cost to customer economics
Review CAC beside the contribution a customer generates and the time needed to recover acquisition spending. A lower CAC can still be unhelpful if the customers churn quickly or require substantial delivery cost. Zero new customers makes spend per customer undefined.
Example with the supplied inputs
Marketing and sales spend: 20000; New customers: 100. Result: 200. The values are illustrative.
Compare one changed input
Marketing and sales spend changes from 20000 to 22000. The result becomes 220. All other inputs remain fixed.
Calculation rule
Result = (([Marketing and sales spend]) ÷ ([New customers]))
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Marketing and sales spend | 20000 | Use marketing and sales spend on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| New customers | 100 | Use the source quantity represented by new customers. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 200 is the example result. Customer acquisition cost needs newly acquired paying customers as its population. Counting unqualified form submissions answers a different question. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Marketing and sales spend, New customers. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Marketing and sales spend on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 200.
Change Marketing and sales spend from 20000 to 22000 while keeping every other value fixed. The result becomes 220. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.