Enter the total amount of money raised and the total cost to achieve that funding into the calculator to determine the cost per dollar raised.

Cost Per Dollar Raised Formula

The following equation is used to calculate the Cost Per Dollar Raised.

CPDR = TCS / TMR

  • Where CPDR is the cost per dollar raised ($/$)
  • TCS is the total amount of money spent on getting funding ($)
  • TMR is the total amount of money raised through funding ($)

To calculate the cost per dollar raised, divide the amount of money spent by the funding received.

What is Cost Per Dollar Raised?

Definition:

Cost per dollar raised is a way of saying how much money a company spent on marketing, product development, outreach, etc., to gain the attention of investors and receive a certain amount of funding.

How to Calculate Cost Per Dollar Raised?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per Dollar Raised.

First, determine the total amount of money the company spent up until the funding round including marketing to attract investors. In this example, the total amount spent was $2,000,000.00.

Next, determine the total capital raised through funding. For this problem, the total amount of funding was $10,000,000.00.

Finally, calculate the cost per dollar raised using the formula above:

CPDR = TCS / TMR

CPDR = $2,000,000.00 / $10,000,000.00

CPDR = $.20 cost per dollar raised