Formulas used by this calculator
- Total acquisition cost = acquisition media spend + other included acquisition costs
- Media-only CAC = acquisition media spend ÷ new customers
- Fully scoped CAC = total acquisition cost ÷ new customers
Worked example
Illustrative acquisition media spend is $6,000, other acquisition costs are $2,000, and 100 new customers were acquired.
Media-only CAC is $60. Fully scoped CAC is ($6,000 + $2,000) ÷ 100 = $80. Calling both numbers simply CAC would hide a $20 difference per customer.
Count new customers once
Shopify's CAC definition uses acquisition costs and first-time customers. Returning customers do not belong in that new-customer denominator. Shopify: defining customer acquisition cost.
Reconcile customer records before counting. Multiple orders by the same new customer should not become several acquisitions. Decide how canceled first orders and duplicate identities are treated, then use the same definition across review periods.
Make the cost allocation inspectable
Enter media spend separately from the sales, agency, creative, software, and labor costs included in the acquisition decision. The second field is a total for the cohort, not an amount per customer. Do not enter media again in that field.
Some expenses support both acquisition and retention. Use an explicit allocation method instead of assuming they all belong to one side. The calculator cannot determine that allocation from totals, and its fully scoped label means fully scoped to the costs you actually entered.
Align the costs with the acquisition cycle
For a short purchase cycle, a calendar-period review can be useful. For a long sales cycle, this month's closed customers may have originated from earlier spending. Keep that lag visible and supplement the ratio with acquisition-cohort reporting.
Compare actual CAC with first-order contribution or a supported payback model. The actual ratio does not establish an affordable target or predict the cost of the next customer. Use the allowable-CAC tool for a separate economics-based ceiling.
Common questions
Why is actual CAC different from allowable CAC?
Actual CAC describes what was spent per acquired customer. Allowable CAC models a ceiling from revenue, costs, and required retained contribution. Comparing the two requires the same media-only or fully scoped cost definition.
What if no new customers were acquired?
The incurred total cost remains visible, but both per-customer ratios are undefined. Reporting zero CAC in that situation would incorrectly suggest customers were acquired for free.
