Customer acquisition cost calculator
Calculate what it costs to acquire a new customer, including expenses beyond ads. Optionally compare CAC with first-order and lifetime contribution to understand how much remains after acquisition.
Calculate customer acquisition costYour acquisition inputs
Amounts are in USD. Use one period and customer group throughout. Defaults are fictional examples. Clear either optional contribution field if unknown. No signup or store connection required.
Your customer acquisition cost
CAC per new customer
Calculating…
Total acquisition costs divided by new paying customers.
| Total acquisition costs for the period | Calculating… |
|---|---|
| New paying customers | Calculating… |
| First-order contribution after CAC, per customer | Calculating… |
| Lifetime contribution after CAC, per customer | Calculating… |
| Contribution LTV:CAC | Calculating… |
Contribution is not net profit. Fixed overhead, taxes and timing of cash flows are not modeled. A lifetime estimate is not a guaranteed return or a payback date.
Customer acquisition cost formula
CAC = total acquisition-related sales and marketing costs ÷ new customers acquired. Use matching periods and a consistent definition of a new customer. Shopify’s ecommerce customer acquisition guide explains this cost-per-customer approach.
- Total acquisition costs = advertising + people and agency costs + other acquisition costs.
- First-order contribution after CAC = first-order contribution before acquisition − CAC.
- Lifetime contribution after CAC = lifetime contribution before acquisition − CAC.
- Contribution LTV:CAC = lifetime contribution before acquisition ÷ CAC.
First-order contribution is already part of lifetime contribution. Do not add these two results together. Calculations use unrounded inputs; displayed currency is rounded to two decimal places.
Worked ecommerce CAC example
A fictional store spends $8,000 on ads, $3,000 on acquisition-related people and agency work, and $1,000 on other acquisition costs in a month. Total costs are $12,000. With 200 new paying customers, CAC is $12,000 ÷ 200 = $60.
If each first order contributes $40 before acquisition, the store has −$20 per new customer after CAC on that first order. If expected lifetime contribution before acquisition is $240, lifetime contribution after CAC is $180 and contribution LTV:CAC is 4.00:1.
That ratio does not say when cash comes back or whether the business covers fixed overhead. Repeat purchases may arrive later or fail to happen. The figures are planning illustrations, not benchmarks or expected Memberply results.
Choose costs and customers consistently
For a blended store-level CAC, include acquisition costs across channels and count unique new paying customers across those channels. For a channel-specific view, include costs allocated to that channel and customers attributed using a stated, consistent rule. Ad platforms can claim the same customer, so do not simply add their reported conversions together.
Allocate shared labor, creative and software costs consistently. Separate acquisition work from retention work when possible, and explain the allocation in your records. Sales-team costs are different from the cost of the goods sold: product and fulfillment expenses belong in contribution, not both sides of the comparison.
A monthly calculation is a useful baseline, but acquisition spending and first purchases can fall in different months. For a longer buying cycle, review a longer window or track acquisition cohorts before interpreting one month’s change as improved efficiency.
Compare acquisition costs with customer value
Use the customer lifetime value calculator to estimate lifetime contribution before acquisition, then enter that figure here. Revenue-based LTV and contribution-based LTV produce different ratios, so label the basis when sharing results.
The average order value calculator helps establish sales per order, but AOV alone is not first-order contribution. Deduct relevant variable costs and use new customers’ first orders for the comparison here.
If the first purchase does not cover CAC, investigate repeat-purchase behavior and the costs of supporting it. Our customer retention examples offer practical experiments, while the loyalty ROI calculator models benefit costs. Memberply helps Shopify merchants configure membership benefits such as store credit, discounts and exclusive access. Installing it does not guarantee lower CAC.
Explore Memberply on ShopifyCustomer acquisition cost questions
How do you calculate customer acquisition cost?
Add the sales and marketing costs allocated to acquiring new customers, then divide by the number of new paying customers acquired. Use the same period and scope for both inputs. For example, $12,000 divided by 200 new customers gives a CAC of $60.
Which costs belong in CAC?
Include acquisition-related advertising, sales and marketing labor, agency fees, creative work, software and other allocated acquisition expenses. Count each cost once. Product costs, payment fees and fulfillment belong in contribution calculations rather than being added again to CAC.
Should I divide by orders or customers?
Use unique new paying customers, not total orders, leads, signups or returning buyers. Someone who places three orders after their first purchase is still one new customer for the acquisition calculation.
What is the difference between CAC and CPA?
CAC measures cost per new customer. An advertising platform’s CPA measures cost per reported action, which might be a lead, signup or purchase by an existing customer. Check the action definition and attribution window before comparing them.
How is contribution LTV:CAC calculated?
This calculator divides lifetime contribution before acquisition costs by CAC. Contribution should deduct product, payment, fulfillment and retention costs. Do not enter lifetime revenue or subtract CAC from lifetime contribution before calculating the ratio.
What is a good customer acquisition cost?
A sustainable CAC depends on customer contribution, repeat purchases, payment timing, overhead and your required profit. This tool does not apply a universal benchmark or label a ratio as healthy. Compare similar customer groups and track actual outcomes.
What happens when there are no new customers or no costs?
CAC is undefined with zero new customers, so enter at least one to calculate it. Zero recorded acquisition costs with positive customers gives a CAC of zero, but the LTV:CAC ratio is then undefined. Check that no relevant costs were omitted.
Explore how much advertising an order can support with the break-even ROAS calculator, including variable costs and an optional contribution target.