Customer Acquisition Cost Calculator

✖Cost of Sales and Marketing refers to the total expenses incurred by a company specifically related to its sales and marketing activities within a given period.ⓘ Cost of Sales and Marketing [CSM]			+10% -10%
✖Number of New Customers Acquired refers to the total count of unique individuals that have become customers of a company within a specific period.ⓘ Number of New Customers Acquired [NNCA]			+10% -10%

✖Customer Acquisition Cost refers to the average cost a business incurs to acquire a new customer.ⓘ Customer Acquisition Cost [CAC]

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Formula

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Customer Acquisition Cost

Formula

`"CAC" = "CSM"/"NNCA"`

Example

`"1.8"="2700"/"1500"`

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Customer Acquisition Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
CAC = CSM/NNCA
This formula uses 3 Variables

Variables Used

Customer Acquisition Cost - Customer Acquisition Cost refers to the average cost a business incurs to acquire a new customer.
Cost of Sales and Marketing - Cost of Sales and Marketing refers to the total expenses incurred by a company specifically related to its sales and marketing activities within a given period.
Number of New Customers Acquired - Number of New Customers Acquired refers to the total count of unique individuals that have become customers of a company within a specific period.

STEP 1: Convert Input(s) to Base Unit

Cost of Sales and Marketing: 2700 --> No Conversion Required
Number of New Customers Acquired: 1500 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CAC = CSM/NNCA --> 2700/1500

Evaluating ... ...

CAC = 1.8

STEP 3: Convert Result to Output's Unit

1.8 --> No Conversion Required

FINAL ANSWER

1.8 <-- Customer Acquisition Cost

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 50+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

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Customer Acquisition Cost Formula

Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
CAC = CSM/NNCA

What is Customer Acquisition Cost ?

Customer Acquisition Cost is a crucial metric used to evaluate the effectiveness and efficiency of marketing and sales efforts in converting new customers. Sum up all costs associated with marketing and sales activities aimed at acquiring new customers. This includes expenses such as advertising, promotional campaigns, sales team salaries, commissions, and overhead costs directly related to customer acquisition efforts. Customer Acquisition Cost is an essential metric for businesses, especially those operating on a subscription model or with high customer turnover, as it directly impacts profitability and sustainability. Overall, tracking Customer Acquisition Cost is essential for businesses to make informed decisions, improve efficiency, and maximize the return on their marketing and sales investments.

How to Calculate Customer Acquisition Cost?

Customer Acquisition Cost calculator uses Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired to calculate the Customer Acquisition Cost, Customer Acquisition Cost refers to the amount of money that a company spends to get a new customer. Customer Acquisition Cost is denoted by CAC symbol.

How to calculate Customer Acquisition Cost using this online calculator? To use this online calculator for Customer Acquisition Cost, enter Cost of Sales and Marketing (CSM) & Number of New Customers Acquired (NNCA) and hit the calculate button. Here is how the Customer Acquisition Cost calculation can be explained with given input values -> 1.8 = 2700/1500.

FAQ

What is Customer Acquisition Cost?

Customer Acquisition Cost refers to the amount of money that a company spends to get a new customer and is represented as CAC = CSM/NNCA or Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired. Cost of Sales and Marketing refers to the total expenses incurred by a company specifically related to its sales and marketing activities within a given period & Number of New Customers Acquired refers to the total count of unique individuals that have become customers of a company within a specific period.

How to calculate Customer Acquisition Cost?

Customer Acquisition Cost refers to the amount of money that a company spends to get a new customer is calculated using Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired. To calculate Customer Acquisition Cost, you need Cost of Sales and Marketing (CSM) & Number of New Customers Acquired (NNCA). With our tool, you need to enter the respective value for Cost of Sales and Marketing & Number of New Customers Acquired and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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