# How To Calculate CAC in Insightly | Arithmix

Learn how to calculate Customer Acquisition Cost (CAC) in Insightly with our step-by-step guide. Improve your business strategy and make informed decisions with this valuable metric.

Calculating customer acquisition cost (CAC) is an important metric for any business looking to grow and expand. By understanding how much it costs to acquire a new customer, businesses can make informed decisions about their marketing and sales strategies. In this article, we'll explore what CAC is, when it's valuable to calculate, and how to calculate it.

## What Is CAC?

CAC is the cost a business incurs to acquire a new customer. This includes all marketing and sales expenses, such as advertising, promotions, salaries, commissions, and other costs associated with acquiring new customers. By calculating CAC, businesses can determine the effectiveness of their marketing and sales strategies and adjust them accordingly.

For example, if a business spends \$10,000 on marketing and sales efforts and acquires 100 new customers, the CAC would be \$100. This means that it costs the business \$100 to acquire each new customer.

## When Is It Valuable To Calculate CAC?

Calculating CAC is valuable for businesses of all sizes and industries. It's particularly important for businesses that rely heavily on customer acquisition to grow and expand, such as startups and e-commerce businesses. By understanding their CAC, these businesses can make informed decisions about their marketing and sales strategies and allocate their resources more effectively.

Additionally, calculating CAC can help businesses identify areas where they can reduce costs and improve efficiency. For example, if a business finds that their CAC is too high, they may need to adjust their marketing and sales strategies to focus on more cost-effective channels or improve their conversion rates.

## How To Calculate CAC

Calculating CAC involves adding up all the costs associated with acquiring new customers and dividing that by the number of new customers acquired during a specific period. Here's a step-by-step guide to calculating CAC:

1. Determine the time period you want to calculate CAC for (e.g., a month, a quarter, or a year).
2. Add up all the costs associated with acquiring new customers during that time period. This may include advertising costs, salaries and commissions for sales staff, and other marketing expenses.
3. Divide the total cost by the number of new customers acquired during that time period.
4. The resulting number is your CAC.

It's important to note that CAC can vary depending on the industry, business model, and marketing and sales strategies. It's also important to consider the lifetime value of a customer when calculating CAC. If a business acquires a customer who will continue to make purchases over a long period of time, the CAC may be worth the investment.

In conclusion, calculating CAC is an important metric for businesses looking to grow and expand. By understanding the cost of acquiring new customers, businesses can make informed decisions about their marketing and sales strategies and allocate their resources more effectively. With the steps outlined in this article, businesses can easily calculate their CAC and use that information to drive growth and success.

## How Do You Calculate CAC in Insightly

Insightly itself isn’t naturally geared towards letting you calculate complex metrics like CAC. As an alternative, teams typically use products like Arithmix to import data from Insightly and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Insightly, combine it with data from other systems, and create calculations like CAC.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.