KKPI Formulas
Marketing KPI Formula

Customer Acquisition Cost Formula

Customer acquisition cost, or CAC, measures the average cost to acquire one new customer.

Use the calculator Browse Marketing KPIs
Affiliate resources

Ideas for You

Useful learning resources related to this page. As an Amazon Associate, this site may earn from qualifying purchases at no extra cost to you.

Customer Acquisition Cost books Books that help you understand Customer Acquisition Cost and related business metrics more deeply. Explore resources → Customer Acquisition Cost audiobooks Audiobook searches for learning Customer Acquisition Cost while commuting, walking, or working. Explore resources → Marketing dashboard resources Excel-focused resources for building KPI trackers and dashboard workflows. Explore resources → Digital marketing analytics Practical resources for turning Customer Acquisition Cost into reports, dashboards, and business decisions. Explore resources →

Simple formula

Sales and Marketing Cost / New Customers

The formula uses these inputs:

  • Sales and Marketing Cost: enter your value in the calculator or spreadsheet.
  • New Customers: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

CAC =
DIVIDE(
    [Sales and Marketing Cost],
    [New Customers]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS customer_acquisition_cost
FROM kpi_data;

Customer Acquisition Cost calculator

Result—

How to interpret Customer Acquisition Cost

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

  • Including retention or account management costs that are not part of acquisition.
  • Using total customers instead of new customers.
  • Mixing annual costs with monthly customers.

Related KPI formulas

Frequently asked questions

What is the Customer Acquisition Cost formula?

The common Customer Acquisition Cost formula is: Sales and Marketing Cost / New Customers.

How do you calculate Customer Acquisition Cost in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.