What this tool does
Computes the cost of acquiring one new customer. Put total marketing and sales spend for a period in the first field and the number of new customers in the same period in the second; the tool divides them.
How to use it
- Fix a single period. Spend and customer count must cover the same window.
- In the first field, enter total spend: ads, sales payroll, and tooling.
- In the second field, enter new customers for that period.
- Run it to get cost per acquired customer.
Worked example
Spend of 100 and 200 new customers give a CAC of 0.5. Spend of 200 with 100 customers gives 2.
Calculation method
a/b*1Frequently asked questions
- The fields are just labelled a and b — which is which?
- The first is total spend, the second is new customers. Reversing them gives customers per unit of spend instead of cost per customer.
- Should payroll be included?
- Sales and marketing payroll spent directly on winning new customers is normally included. Excluding retention costs makes comparisons cleaner.
What this tool does not cover
Channel breakdown, attribution weighting, and lag effects are not handled. Customers who sign up months after seeing an ad can distort the result depending on the window you choose.