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How to calculate Customer acquisition cost

The Customer acquisition cost formula, with plain worked examples you can check yourself.

Customer acquisition cost = Marketing ÷ New customers

Worked examples

Marketing = 2000 · New customers = 100Customer acquisition cost = 20
Marketing = 3000 · New customers = 100Customer acquisition cost = 30
Marketing = 3600 · New customers = 40Customer acquisition cost = 90

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Funding & Growth.

Related terms

AcquisitionVenture capitalBurn rateIPOPivotSeed funding

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