How it works
Customer acquisition cost divides acquisition-related marketing and sales expenses by newly acquired customers. Leads and repeat orders are different denominators.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
Ad spend: $12,000; Tools + agency + other: $3,000; New customers: 500; Blended CAC: $30.00; AOV: $80; Contribution margin: 45%; First-order contribution: $36.00; Contribution after CAC: $6.00.
Calculation method
Advanced mode sums advertising, agency, creative, tools, sales and other acquisition expenses. Allocate shared expenses consistently and avoid counting a cost twice.
Interpretation
First-order contribution is revenue left before acquisition cost. Subtracting CAC shows whether the first purchase covers that cost under your inputs.
Limitations
The basic total is only as complete as the costs you include. Ad spend alone is an ad-only acquisition measure; this calculator cannot infer omitted expenses or future purchases.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- Google Ads — Campaign performance metricsAdvertising metric definitions; profit targets and attribution assumptions are supplied by you.
- SBA — Break-even pointContribution, variable costs and fixed-cost break-even context; tool-specific extensions are explained above.
Frequently asked questions
Can I enter only ad spend as CAC?
You can calculate an advertising-only acquisition cost, but blended CAC also includes relevant creative, agency, tools and sales expenses. Label the cost scope consistently when comparing periods.
What is a worked example for Customer Acquisition Cost?
Ad spend: $12,000; Tools + agency + other: $3,000; New customers: 500; Blended CAC: $30.00; AOV: $80; Contribution margin: 45%; First-order contribution: $36.00; Contribution after CAC: $6.00.