How to Calculate Your True Cost Per Acquired Customer

Tracking "cost per lead" is a vanity metric. What actually matters is how much you spend to acquire a paying customer. This number tells you whether your marketing is profitable—or bleeding money.

The Formula

Cost Per Acquired Customer (CPAC) = Total Marketing Spend ÷ Number of Customers Acquired

But let's break this down further:

Step 1: Track All Marketing Costs

• Lead generation services
• Google/Facebook ads
• Website hosting and maintenance
• SEO services
• Print materials
• Vehicle wraps
• Referral bonuses

Step 2: Track Conversions by Source

For each marketing channel, track:

• Leads received
• Estimates scheduled
• Jobs closed
• Revenue generated

Step 3: Calculate CPAC by Channel

Example:

• Spent $2,000 on leads
• Received 20 leads
• Closed 6 jobs
• CPAC = $2,000 ÷ 6 = $333 per customer

What's a Good CPAC?

It depends on your average job size:

Avg Job Size	Target CPAC	Max CPAC
$5,000	$250	$500
$10,000	$500	$1,000
$20,000	$1,000	$2,000
$50,000	$2,500	$5,000

Rule of thumb: CPAC should be 5-10% of average job value.

Why Exclusive Leads Lower CPAC

Even if exclusive leads cost more per lead, higher close rates mean lower CPAC:

Shared Leads:

• Cost: $50/lead
• Close rate: 10%
• CPAC: $500

Exclusive Leads:

• Cost: $100/lead
• Close rate: 35%
• CPAC: $286

The "expensive" exclusive lead actually costs 43% less per acquired customer.

Track Lifetime Value Too

Don't forget: a customer acquired today might refer 3 more customers over the next 5 years. Factor in lifetime value, and your true CPAC looks even better.