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Customer Acquisition Cost Formula

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Customer Acquisition Cost refers to the average cost a business incurs to acquire a new customer. Check FAQs

CAC = \frac{CSM}{NNCA}

CAC - Customer Acquisition Cost?CSM - Cost of Sales and Marketing?NNCA - Number of New Customers Acquired?

Customer Acquisition Cost Example

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With units

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Here is how the Customer Acquisition Cost equation looks like with Values.

Here is how the Customer Acquisition Cost equation looks like with Units.

Here is how the Customer Acquisition Cost equation looks like.

1.8 = \frac{2700}{1500}

1.8 = \frac{2700}{1500}

1.8 = \frac{2700}{1500}

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Customer Acquisition Cost Solution

Follow our step by step solution on how to calculate Customer Acquisition Cost?

FIRST Step Consider the formula

CAC = \frac{CSM}{NNCA}

Next Step Substitute values of Variables

∴

CAC = \frac{2700}{1500}

Next Step Prepare to Evaluate

∴

CAC = \frac{2700}{1500}

LAST Step Evaluate

∴

CAC = 1.8

Customer Acquisition Cost Formula Elements

Variables

Customer Acquisition Cost

Customer Acquisition Cost refers to the average cost a business incurs to acquire a new customer.

Symbol: CAC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Customer Acquisition Cost

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.

Symbol: CSM

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Cost of Sales and Marketing

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.

Symbol: NNCA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of New Customers Acquired

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LCV = (SO \cdot SR) - (ATH \cdot ART)

How to Evaluate Customer Acquisition Cost?

Customer Acquisition Cost evaluator uses Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired to evaluate 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 evaluate Customer Acquisition Cost using this online evaluator? To use this online evaluator for Customer Acquisition Cost, enter Cost of Sales and Marketing (CSM) & Number of New Customers Acquired (NNCA) and hit the calculate button.

FAQs on Customer Acquisition Cost

What is the formula to find Customer Acquisition Cost?

The formula of Customer Acquisition Cost is expressed as Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired. Here is an example- 1.8 = 2700/1500.

How to calculate Customer Acquisition Cost?

With Cost of Sales and Marketing (CSM) & Number of New Customers Acquired (NNCA) we can find Customer Acquisition Cost using the formula - Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired.

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Customer Acquisition Cost Formula

Customer Acquisition Cost Example

Customer Acquisition Cost Solution

Customer Acquisition Cost Formula Elements

Other formulas in Cost Accounting category

How to Evaluate Customer Acquisition Cost?

FAQs on Customer Acquisition Cost

Variable Name