Customer Acquisition Cost Calculator

The Customer Acquisition Cost (CAC) Calculator helps businesses measure how much they spend to win each new customer. CAC is one of the most important metrics in SaaS, e-commerce, and any business that invests in marketing and sales to grow its customer base. By tracking CAC alongside customer lifetime value (LTV), you can determine whether your growth spending is sustainable.

What Is Customer Acquisition Cost?

Customer acquisition cost (CAC) is the total cost of marketing and sales divided by the number of new customers acquired over the same period. It captures every dollar spent to attract, convert, and close a new customer.

The formula is:

CAC = (Cost of Marketing + Cost of Sales) / Number of New Customers

For example, if a company spends $50,000 on marketing and $30,000 on sales in one quarter and acquires 200 new customers, the CAC is ($50,000 + $30,000) / 200 = $400 per customer. This means the company invested $400 on average to gain each new paying customer during that quarter.

A healthy business keeps CAC well below customer lifetime value (LTV). A common benchmark is an LTV:CAC ratio of 3:1 or higher, meaning each customer generates at least three times what it cost to acquire them.

How to Use This Calculator

Enter your total marketing costs for the period in the "Cost of Marketing" field. Include advertising spend, content creation, SEO tools, paid social, email platforms, and any other marketing expenses.
Enter your total sales costs in the "Cost of Sales" field. Include sales team salaries, commissions, CRM software, travel, and sales enablement tools.
Enter the number of new customers acquired during the same period in the "Number of New Customers" field.
The calculator will compute your CAC. You can also enter any three values to solve for the fourth.

Applications

Budget planning: Set marketing and sales budgets based on target customer growth. If your goal is 500 new customers and your CAC is $200, you need at least $100,000 in combined marketing and sales spend.
Channel comparison: Calculate CAC for each marketing channel separately to identify which channels deliver customers most cost-effectively.
Investor reporting: CAC is a key metric for investors evaluating business efficiency. Showing a declining CAC over time signals improving unit economics.
Pricing strategy: Your product price must ultimately cover CAC. If CAC is $400, your average revenue per customer needs to exceed that amount for the business to be viable.

Tips

Use the same time period for both costs and customer counts. If you measure quarterly marketing spend, count only customers acquired that quarter.
Include all relevant costs. Omitting sales salaries or agency fees will understate your true CAC and give a misleading picture of profitability.
Track CAC monthly or quarterly to spot trends. A rising CAC may indicate market saturation or less efficient ad spend that needs attention.

FAQ

What is a good CAC?

There is no universal benchmark because CAC varies widely by industry. For SaaS companies, a CAC payback period of 12 months or less is considered healthy. The most useful comparison is your own LTV:CAC ratio. Aim for at least 3:1, meaning each customer generates three dollars of lifetime value for every dollar you spent acquiring them.

Should I include existing customer retention costs in CAC?

No. CAC should only include costs associated with acquiring new customers. Retention costs (customer success, support, loyalty programs) are separate. Mixing acquisition and retention costs inflates CAC and makes it harder to evaluate your growth spending efficiency.