Quarterly acquisition review
A company spent 540,000 on sales and marketing and acquired 180 new customers.
Inputs
- Spend: 540,000
- New customers: 180
Steps
- CAC = 540,000 / 180 = 3,000
Result
- Customer acquisition cost is 3,000.
Calculate customer acquisition cost from sales and marketing spend divided by the number of new customers acquired.
Result
Calculating the sample result.
CAC is a foundational operating metric because it converts go-to-market spend into a cost per new customer.
Inputs
Outputs
Divide the total acquisition spend by the number of new customers acquired in the same period.
CAC = sales and marketing spend / new customers
Quarterly acquisition review
A company spent 540,000 on sales and marketing and acquired 180 new customers.
Inputs
Steps
Result
Usually yes if they are part of the acquisition motion. The key is to use a definition consistently.
Not necessarily. Higher CAC can still be attractive if retention, expansion, and gross margin are strong.
Keep going
Estimate customer lifetime value from ARPA, gross margin, and churn rate.
Compare estimated lifetime value against customer acquisition cost to measure unit economics efficiency.
Estimate how many months it takes to recover customer acquisition cost from gross-margin-adjusted monthly recurring revenue.