Customer Acquisition Cost (CAC) Calculator
Use this calculator to determine your Customer Acquisition Cost (CAC), which is crucial for understanding the efficiency of your marketing and sales efforts. This tool is designed for marketing professionals seeking to optimize their expenditure and enhance strategic planning.
Calculate Your CAC
Results
Data Source and Methodology
All calculations are based on standard accounting practices and methodologies. For more information, please refer to the Authoritative Data Source.
The Formula Explained
Glossary of Terms
- Total Marketing Spend: The total amount spent on marketing activities.
- Total Sales Spend: The total amount spent on sales activities.
- Number of New Customers: The number of new customers acquired over a specific period.
- Customer Acquisition Cost (CAC): The cost of acquiring a new customer.
How It Works: A Step-by-Step Example
Assume your Total Marketing Spend is $10,000 and Total Sales Spend is $5,000, and you acquire 100 new customers. The CAC is calculated as:
CAC = \(\frac{10,000 + 5,000}{100} = 150\). Therefore, your CAC is $150 per customer.
Frequently Asked Questions (FAQ)
What is Customer Acquisition Cost (CAC)?
CAC is the cost associated with acquiring a new customer, including marketing and sales expenses.
Why is CAC important?
CAC is crucial for understanding how effectively a company is spending its budget to attract new customers.