At least one acquired customer is required. Zero spend is valid and yields a zero acquisition cost; include only customers attributable to the same spend period and scope.
Planning estimate only, calculated locally in your browser. Verify figures with your accountant, lender, and actual records before making financial decisions.
Contractor field notes
Find what it costs to acquire a contractor customer
Customer acquisition cost (CAC) divides advertising and marketing spending by the number of customers acquired. Use it to compare campaigns or channels, while keeping the cost categories, attribution method, and time period consistent.
Customer acquisition cost formula
CAC = advertising and marketing spend ÷ customers acquired.
Worked example
If a campaign costs $3,000 and produces six new customers, CAC is $3,000 ÷ 6 = $500 per acquired customer. If those customers generate $12,000 gross profit before marketing, subtracting the $3,000 marketing cost leaves $9,000 before other expenses.
Common estimating pitfalls
01Customers acquired are not the same as leads or appointments.
02Do not divide this month’s spending by customers from an unrelated campaign or period.
Frequently asked questions
What is a good CAC for contractors?
There is no universal amount. Compare CAC with the gross profit you expect from an acquired customer, repeat work, cash-flow needs, and your overhead.
What happens when no customers are acquired?
Cost per customer cannot be calculated by dividing by zero. The tool requires a positive customer count; separately report the spend that produced no customers.
Should I include agency fees?
Include the marketing costs you want the metric to represent, such as ad spend and relevant fees. Use the same definition when comparing campaigns.
