What is Customer Acquisition Cost (CAC)?

CAC is the total cost of sales and marketing divided by the number of new customers acquired in a period. It includes ad spend, salaries, tools, and overhead allocated to acquiring customers.

How do I calculate and lower CAC?

Track all acquisition-related expenses and divide by new customers. Lower it by improving conversion rates, targeting better audiences, increasing organic channels, and improving retention so you acquire fewer new customers overall.

What is a healthy CAC to LTV ratio?

A common benchmark is LTV:CAC of at least 3:1 (lifetime value is three times the cost to acquire). Higher is better, but too high can mean you're under-investing in growth.

Customer Acquisition Cost Calculator

Customer Acquisition Cost - Calculate and analyze your financial metrics with this comprehensive calculator.

Customer Acquisition Cost Calculator

Calculate CAC, analyze channels, and optimize your customer acquisition strategy

Business Information

Business Name

Industry Type

Time Period (Months)

Marketing & Sales Expenses

Advertising Spend ($)

Content Marketing ($)

Social Media ($)

SEO ($)

Email Marketing ($)

Events & Sponsorships ($)

PR & Media ($)

Affiliate Marketing ($)

Other Marketing ($)

Sales Team Costs

Sales Salaries ($)

Commissions ($)

Bonuses ($)

Training & Development ($)

Sales Tools & Software ($)

Marketing Team Costs

Marketing Salaries ($)

Bonuses ($)

Marketing Tools ($)

Agency Fees ($)

Technology & Infrastructure

CRM Software ($)

Analytics Tools ($)

Marketing Automation ($)

Other Tech Costs ($)

Customer Acquisition Metrics

Total New Customers

Average Order Value ($)

Customer Lifetime Value ($)

New Customers by Channel

From Advertising

From Content Marketing

From Social Media

From SEO

From Email

From Events

From PR

From Affiliate

From Other

Monthly Customer Acquisition (For Trend Analysis)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Customer Acquisition Cost (CAC)

CAC measures the average cost to acquire a customer: total sales & marketing spend divided by new customers.

Formula

CAC = (sales + marketing) / new customers

Example

$50,000 spent, 200 customers → CAC = $250 per customer.

FAQs

Blended vs channel CAC?
Track by channel for optimization.

CAC vs LTV?
Ensure LTV > 3× CAC for sustainability.

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Customer Acquisition Cost Calculator

Customer Acquisition Cost Calculator

Business Information

Marketing & Sales Expenses

Sales Team Costs

Marketing Team Costs

Technology & Infrastructure

Customer Acquisition Metrics

New Customers by Channel

Monthly Customer Acquisition (For Trend Analysis)

Customer Acquisition Cost Calculator Guide

Customer Acquisition Cost (CAC)

Formula

Example

FAQs

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