How to Calculate Customer Acquisition Cost (CAC)

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To keep their doors open, businesses need to attract new customers. So how much will it cost to attract those customers? Here's how to find out.

Customer acquisition cost (CAC) is the amount of money spent to acquire new customers.

To calculate your customer acquisition cost, you first need to add up all the costs you incurred to acquire new customers over a period of time. This could include costs for employees, collateral, product demonstrations, and more.

You will then divide the results by the number of kuwait mobile database customers acquired during that time.

For example, if you spend ₽30,000 on marketing per year and you manage to attract 120 new customers, your calculations should look like this: ₽30,000 ÷ 120 = 250. So, you spend an average of ₽250 per new customer, which is slightly lower than the average B2B SaaS company spends.

CAC formula: Total cost of acquiring new customers/Number of customers acquired.

Formula for calculating average revenue per user (ARPU)
If you want to understand how much the average user will spend on your product, you need to calculate the average revenue per user (ARPU).