CAC Calculator (Customer Acquisition Cost)

Finance

Calculate your customer acquisition cost (CAC) — the average amount spent on sales and marketing to win one new customer. Enter your total sales and marketing spend and the number of new customers acquired.

Formula

CAC = Sales and Marketing Cost ÷ New Customers Acquired
  • CAC measures how much you spend, on average, to acquire one new customer.
  • CAC = total sales and marketing spend ÷ new customers acquired in the same period.
  • Include ad spend, salaries, software, and commissions for an accurate figure.
  • Compare CAC against customer lifetime value (LTV) — a healthy LTV:CAC ratio is often 3:1 or higher.
  • A rising CAC can signal saturated channels or weakening marketing efficiency.

120,000 spend, 240 new customers

Inputs
  • Sales + Marketing Cost: 120000
  • New Customers Acquired: 240

120,000 ÷ 240 = 500. It costs an average of 500 to acquire each new customer.

Frequently asked questions

What is customer acquisition cost?
CAC is the average cost of winning one new customer, found by dividing sales and marketing spend by the number of customers gained.
What costs should I include?
All acquisition costs — advertising, marketing salaries, sales commissions, and tools — over the period you're measuring.
What is a good CAC?
It depends on your margins and customer lifetime value. Aim for an LTV that's at least three times your CAC.
What is the LTV:CAC ratio?
It compares the lifetime value of a customer to the cost of acquiring them. A ratio of 3:1 or more is generally considered healthy.
How can I lower my CAC?
Improve conversion rates, focus on higher-performing channels, boost referrals, and retain customers longer.