Customer Acquisition Cost (CAC) Calculator

What is CAC?

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing and sales expenses.

A lower CAC generally indicates more efficient marketing and sales processes.

Why does CAC matter to your D2C consumer brand?

1. Direct Customer Relationships: D2C brands have direct relationships with their customers, which provides valuable data for tracking CAC and LTV.
2. Digital Marketing Focus: D2C brands rely heavily on digital marketing, which makes it easier to track and attribute customer acquisitions to specific channels and campaigns.
3. Competition: The D2C landscape is highly competitive, making efficient customer acquisition even more critical.

Types of CAC Calculations

1. Basic CAC
   The most fundamental way to calculate CAC. Simply calculated as "Total Marketing & Sales Spend / Number of New Customers Acquired"
2. CAC by Channel
   This calculation breaks down CAC by marketing channel, providing insights into which channels are most effective at acquiring customers. Calculated as "Marketing Spend on Channel / Number of New Customers Acquired from that Channel"
3. Fully loaded CAC
   This incorporates all costs related to customer acquisition, including overhead and other indirect expenses. Calculated as "(Total Marketing & Sales Spend + Overhead + Salaries of All Customer-Facing Staff) / Number of New Customers Acquired"