How To Calculate CAC

Last Updated on August 16, 2023 by Jake Sheridan

In this tutorial, you will learn how to calculate the customer acquisition cost or CAC.

How To Calculate CAC (Customer Acquisition Cost) in Google Sheets

If you are running a digital marketing campaign, you may be wondering how much it costs you to acquire a new customer. For example, you might want to know if you can realistically gain 20 more customers this month if you are following a certain marketing budget.

The Customer Acquisition Cost or COC measures the amount of money spent to gain a single customer. It is calculated by dividing the total cost of a marketing campaign by the number of customers acquired from that campaign.

This metric is important for gauging the effectiveness of your marketing campaigns. The metric is also paired well with the customer lifetime value or LTV since it helps to view the upfront cost of gaining a customer as an investment.

In this guide, we will show you how to calculate your CAC in Google Sheets.

How to Find the Customer Acquisition Cost in Google Sheets

Here’s how to determine the customer acquisition cost in Google Sheets.

Step 1

First, the user must indicate the total amount spent in marketing. These expenses typically refer to advertising costs but may also include overhead costs as well.

In our example, we spent $1,500 of our marketing budget for the July campaign.

Step 2

Next, find out the number of new customers gained during the campaign.

Our July campaign managed to attract 75 new customers to our business.

Step 3

We can find the customer acquisition cost by dividing the the total expenses from marketing by the number of new customers gained. The resulting value will quantify the dollar cost of gaining a single new customer through marketing efforts.

Summary

This guide should be everything you need to calculate the customer acquisition cost or CAC.

You may make a copy of this example spreadsheet to test it out on your own.