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Customer Acquisition Cost (CAC) Calculator

Measure how much you spend to acquire a new customer. Use CAC to evaluate marketing ROI, compare channels, and improve profitability.

① Calculate Customer Acquisition Cost

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Include all costs: ads, salaries, software, agency fees, etc.
customers
Number of new customers gained in the same period.

② Advanced CAC Breakdown & LTV Ratio

Break down your acquisition costs by channel and compare CAC to Customer Lifetime Value (LTV) for deeper insights.

Cost Breakdown (Optional)

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Customer Lifetime Value (LTV)

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Total profit expected from a typical customer over their lifetime.

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What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) measures the total cost of acquiring a new customer. It includes all marketing and sales expenses over a given period divided by the number of new customers gained. Formula: CAC = Total Marketing & Sales Spend ÷ Number of New Customers.

Tracking CAC helps you evaluate marketing efficiency, optimize channel spend, and ensure that customer acquisition doesn't exceed customer lifetime value. A healthy SaaS or ecommerce business typically aims for an LTV:CAC ratio of 3:1 or higher.

Why it matters: Reducing CAC directly improves profitability. By understanding your CAC by channel, you can double down on high-ROI strategies and cut wasteful spending.

Key Formulas & Benchmarks

CAC = Total Marketing & Sales Spend ÷ New Customers

LTV:CAC Ratio = LTV ÷ CAC (target > 3:1)

CAC Payback Period (months) = CAC ÷ (Average Monthly Gross Profit per Customer)

Industry Benchmarks: SaaS CAC typically $500–$5,000; Ecommerce $10–$100; B2B services $1,000–$10,000. LTV:CAC should be at least 3:1 for sustainable growth.

Frequently Asked Questions

What costs should I include in CAC?

Include all variable and fixed costs related to acquiring customers: advertising spend, sales team salaries, marketing software, agency fees, content creation, and any overhead directly tied to acquisition.

What is a good CAC?

A good CAC depends on your industry and LTV. Generally, aim for CAC to be <30% of LTV. The LTV:CAC ratio should be >3:1 for healthy unit economics.

How can I reduce CAC?

Optimize ad targeting, improve conversion rates, leverage organic channels (SEO, content), implement referral programs, and streamline sales processes.

What's the difference between CAC and CPA?

CAC (Customer Acquisition Cost) focuses on the total cost to acquire a paying customer. CPA (Cost Per Acquisition) often refers to cost per lead or per action, not necessarily a paying customer.