KPI Tree

HubSpot Metric

CRM & Marketing

CAC = Total Sales & Marketing Spend / New Customers Acquired

Customer acquisition cost (CAC) is the total sales and marketing expenditure divided by the number of new customers acquired in the same period. It quantifies the investment required to convert a prospect into a paying customer.

Full guide: definition, formula, and benchmarks
HubSpotCRM & Marketing

Customer Acquisition Cost

Customer acquisition cost (CAC) is the total sales and marketing expenditure divided by the number of new customers acquired in the same period. It quantifies the investment required to convert a prospect into a paying customer.

How to calculate customer acquisition cost

CAC = Total Sales & Marketing Spend / New Customers Acquired

Why customer acquisition cost matters for HubSpot users

CAC determines whether your growth is economically sustainable. When acquisition cost exceeds the value a customer delivers, every new customer accelerates losses rather than building the business.

HubSpot users can decompose CAC by channel, campaign, and sales rep to identify the most efficient acquisition paths. Tracking CAC alongside customer lifetime value provides the essential ratio that governs investment decisions across marketing and sales.

Understand and act on customer acquisition cost with KPI Tree

Connect HubSpot deal and campaign data to KPI Tree via your warehouse, blending in marketing spend from your finance systems. Build a CAC tree that decomposes cost by channel and campaign.

Assign marketing and finance co-ownership with alerts when CAC rises beyond acceptable LTV ratios for any channel or segment.

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