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Customer Acquisition Cost Calculator

Calculate CAC from total marketing spend and new customers acquired. Enter values for instant results with step-by-step formulas.

Reviewed by Daniel Agrici, Founder & Lead Developer

Reviewed by Daniel Agrici, Founder & Lead Developer

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.

References

Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy