Customer Acquisition Cost (CAC) Calculator
Calculate Customer Acquisition Cost for your business
Calculate Customer Acquisition Cost
Advertising, promotions, content marketing costs
Sales team salaries, commissions, tools
New customers acquired during the period
Calculation Results
Cost Breakdown
Per Customer Analysis
Formula Used
CAC: (Cost of Marketing + Cost of Sales) ÷ Number of New Customers
CAC Analysis
Example Calculation
Company Alpha's Acquisition Costs
Company: Company Alpha
Cost of marketing: $1,000
Cost of sales: $12,000
Number of new customers: 1,000
CAC Calculation
1. Total acquisition cost = Marketing cost + Sales cost
2. Total acquisition cost = $1,000 + $12,000 = $13,000
3. CAC = Total acquisition cost ÷ Number of new customers
4. CAC = $13,000 ÷ 1,000 = $13.00 per customer
This is an excellent CAC for most businesses!
All CAC Formulas
Calculate CAC
Formula:
CAC = (Marketing + Sales) ÷ Customers
Use when: You know costs and customer count
Calculate Max Customers
Formula:
Customers = Total Cost ÷ Target CAC
Use when: You have fixed costs and target CAC
Calculate Budget Customers
Formula:
Customers = Budget ÷ Target CAC
Use when: You have a set budget and target CAC
Calculate Total Cost
Formula:
Total Cost = Customers × Target CAC
Use when: You know customer target and CAC
What is CAC?
Customer Acquisition Cost
Money needed to acquire a single customer
Business Efficiency
Lower CAC indicates more efficient business
Growth Metric
Essential for scaling business operations
CAC Benchmarks by Industry
E-commerce / SaaS
B2B Software
Enterprise Sales
Consumer Apps
CAC Health Check
CAC Optimization Tips
Improve targeting to reduce wasted ad spend
Optimize conversion funnel to increase conversion rates
Test different marketing channels for efficiency
Leverage referrals and word-of-mouth marketing
Automate sales processes to reduce costs
Focus on high-LTV customer segments
Understanding Customer Acquisition Cost (CAC)
What is CAC?
Customer Acquisition Cost (CAC) is the money needed to acquire a single customer. It includes all marketing and sales expenses divided by the number of new customers acquired during a specific period. Lower CAC indicates higher business efficiency.
Why CAC Matters
- •Business Efficiency: Measures how efficiently you acquire customers
- •Profitability: Must be lower than customer lifetime value
- •Scalability: Determines sustainable growth potential
- •Investment Planning: Helps allocate marketing budget
CAC Calculation Methods
CAC = (Marketing + Sales) ÷ Customers
Basic CAC calculation formula
Max Customers = Total Cost ÷ Target CAC
Calculate maximum customers with fixed costs
Required Budget = Target Customers × CAC
Estimate budget needed for customer targets
Pro Tip: CAC should ideally be 1/3 or less of your customer lifetime value (LTV) for a healthy and sustainable business model.