Accounting Customer Acquisition Cost (Per-Unit) Calculator
Calculate the average cost to acquire one new customer using your sales, marketing, and related acquisition expenses.
Overview
This Customer Acquisition Cost (CAC) calculator estimates the average amount your business spends to gain one new customer. Add advertising, sales and marketing payroll, other relevant acquisition costs, and the number of customers acquired over the same period.
How it works
Customer acquisition cost is calculated by adding the acquisition-related costs you enter and dividing that total by the number of new customers acquired. For a meaningful result, costs and customer counts should cover the same time period and use the same definition of a new customer.
How to use this calculator
- 1Enter advertising spending for the reporting period.
- 2Add sales and marketing payroll tied to acquisition activity.
- 3Include other relevant acquisition costs, such as agency or campaign-tool fees.
- 4Enter the number of new customers acquired in that same period.
- 5Review the average cost per new customer and total included spending.
Example Calculation
Advertising Spend
$5,000
Sales and Marketing Payroll
$3,500
Other Acquisition Costs
$1,500
New Customers Acquired
100
Customer Acquisition Cost per New Customer
$100.00
Total acquisition costs are $10,000. Dividing this by 100 new customers gives a customer acquisition cost of $100 per customer.
Frequently asked questions
What is customer acquisition cost?
Customer acquisition cost, often called CAC, is the average cost of gaining one new customer. It is commonly calculated by dividing relevant sales and marketing costs by new customers acquired.
Which costs should be included in CAC?
Businesses often include paid advertising, campaign production, acquisition-focused agency fees, sales and marketing payroll, commissions, events, and relevant software. Use a consistent policy for each reporting period.
Should I include existing customer retention costs?
Usually no. CAC is intended to measure costs of acquiring new customers. Retention, support, and account-management costs are commonly tracked separately unless they are directly part of winning new customers.
What period should I use for a CAC calculation?
You can use a month, quarter, year, or campaign period. The cost figures and new-customer count must cover the exact same period.
Why might CAC differ by marketing channel?
Different channels have different audience costs, conversion rates, sales cycles, and attribution methods. Calculating CAC separately by channel can help identify where acquisition spending is most efficient.
Is a lower CAC always better?
Not necessarily. CAC should be considered alongside customer revenue, gross margin, retention, and strategic goals. A higher acquisition cost may be sustainable if customers generate sufficient long-term value.
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Assumptions and warnings
Assumptions
- All entered costs relate to the same reporting period as the new-customer count.
- Only costs that support acquiring new customers are included.
- Each new customer is counted once, regardless of their first purchase value.
- The result is an average cost and may vary by channel, product, or customer segment.
Warnings
- This calculator provides an internal accounting estimate only and is not financial or accounting advice.
- Use consistent cost allocation and customer definitions when comparing results across reporting periods.