Customer Acquisition Cost Calculator
Calculate CAC from total marketing spend and new customers acquired. Enter values for instant results with step-by-step formulas.
Formula
CAC = (Total Marketing Spend + Total Sales Spend) / New Customers Acquired
Add all marketing and sales expenses for a given period, then divide by the number of new customers acquired during that same period. The result is your average cost to acquire one new customer.
Worked Examples
Example 1: SaaS Company CAC
Problem: A SaaS company spends $50,000/month on marketing and $30,000/month on sales, acquiring 200 new customers. Their average customer LTV is $1,200.
Solution: Total Spend = $50,000 + $30,000 = $80,000\nCAC = $80,000 / 200 = $400\nLTV:CAC = $1,200 / $400 = 3.0:1
Result: CAC: $400 | LTV:CAC Ratio: 3.0:1 — Healthy
Example 2: E-commerce Business
Problem: An online store spends $15,000 on ads and $5,000 on email marketing, gaining 500 new customers.
Solution: Total Spend = $15,000 + $5,000 = $20,000\nCAC = $20,000 / 500 = $40
Result: CAC: $40 per customer
Frequently Asked Questions
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including all marketing and sales expenses. It is calculated by dividing total acquisition spending by the number of new customers gained in a specific period. For example, if you spend $10,000 on marketing and sales in a month and acquire 100 new customers, your CAC is $100. CAC is a critical metric for understanding business unit economics and profitability.
How is customer lifetime value (CLV) calculated?
Simple CLV = Average Purchase Value * Purchase Frequency * Customer Lifespan. For subscription models: CLV = Average Monthly Revenue per Customer / Monthly Churn Rate. For example, if a customer pays 50 dollars/month and your monthly churn is 5%, CLV = 50/0.05 = 1,000 dollars. CLV should be at least 3 times your customer acquisition cost.
How do I calculate customer acquisition cost (CAC)?
CAC = Total Sales and Marketing Expenses / Number of New Customers Acquired in that period. Include all related costs: advertising, salaries, tools, commissions, and overhead. CAC payback period = CAC / Monthly Gross Margin per Customer. A payback period under 12 months is generally healthy for SaaS businesses.
Can I use Customer Acquisition Cost Calculator on a mobile device?
Yes. All calculators on NovaCalculator are fully responsive and work on smartphones, tablets, and desktops. The layout adapts automatically to your screen size.
Is my data stored or sent to a server?
No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.
How do I get the most accurate result?
Enter values as precisely as possible using the correct units for each field. Check that you have selected the right unit (e.g. kilograms vs pounds, meters vs feet) before calculating. Rounding inputs early can reduce output precision.