Customer Acquisition Cost (CAC) Calculator
Calculate your customer acquisition cost. Enter your total sales and marketing spend and the new customers it brought to see your CAC per customer.
What CAC tells you
Customer acquisition cost is the average amount you spend to win one new customer. You find it by dividing your total sales and marketing spend by the number of new customers it produced over the same period. CAC is one of the most important growth numbers because it tells you whether your marketing pays for itself.
CAC only makes sense next to LTV
A CAC of 50 dollars is good or bad depending on what a customer is worth. If each customer brings 300 dollars over their lifetime, a 50 dollar CAC is healthy. If they bring 60 dollars, you are barely breaking even. Always read CAC alongside lifetime value. A common target is a lifetime value at least three times the CAC.
How to use it
Add up everything you spent on sales and marketing in a period, including ads, tools and salaries, and enter it. Enter the new customers that spend brought in. The tool returns your CAC. Then check the other side of the equation with the Customer Lifetime Value Calculator to see if the ratio works.
Frequently Asked Questions
How do you calculate CAC?
Divide your total sales and marketing spend by the number of new customers acquired in the same period.
What costs should I include?
Include ad spend, marketing tools, content costs and the salaries of staff working on acquisition for that period.
What is a good CAC?
There is no fixed number. Judge it against lifetime value. Many businesses aim for an LTV to CAC ratio of three or higher.
Is it free?
Yes, free and private.