A Customer Acquisition Cost (CAC) Calculator is a tool that helps businesses determine the cost of acquiring a new customer.
The CAC Calculator shows how much you spend to attract each customer by dividing total marketing expenses by the number of new customers.
This helps you optimize your marketing budget and boost profitability.
This Customer Acquisition Cost (CAC) Calculator helps you quickly see how much you spend to gain each new customer.
We’ve already covered this in our e-commerce glossary, explaining What is eCommerce Customer Acquisition Cost in detail to help you better understand this key metric.
How to Use the CAC Calculator?
- Enter Total Cost of Sales – Input the total amount spent on sales efforts.
- Enter Total Cost of Marketing – Add up all your marketing expenses and enter the total.
- Enter Number of New Customers – Input the number of new customers acquired during the period.
- Calculate – The CAC Calculator will instantly compute your Customer Acquisition Cost by dividing the total cost of sales and marketing by the number of new customers.
Why is Tracking CAC Important?
- Measure marketing effectiveness: This helps you see how well your marketing efforts are working.
- Optimize budget: Identifies where you can spend less or invest more wisely.
- Improve profitability: Ensures you’re not overspending to acquire customers.
- Monitor growth: Tracks how your customer acquisition costs change over time.
- Plan long-term strategies: Provides data to adjust your marketing and sales approach for better results.