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CAC Calculator

Find your customer acquisition cost — how much it costs to win each new customer.

Your Details

CAC
$100
New Customers
80
Total Spend
$8,000
Spend per Customer
$100

Breakdown

Visual split of the key components

$8,000Total Spend
  • Total Marketing & Sales Spend8000

Sensitivity

How the result changes across a range

How It Works

  1. Enter the values on the left.
  2. Press Calculate to see your results and charts.
  3. Use Reset to start over from the defaults.

Formula Used

CAC = Total Marketing & Sales Cost ÷ New Customers

Include all costs involved in acquisition — ad spend, sales salaries, tools — for an accurate figure.

Good to Know

  • • A healthy LTV:CAC ratio is often cited as 3:1 or better.
  • • CAC tends to rise as easier-to-convert customers are exhausted.

Important Notes

  • • Only counts costs tied to acquiring new customers.
  • • Excludes retention or upsell spending.

What to Include in the Cost Figure

A common mistake when calculating CAC is counting only direct ad spend, leaving out other real costs involved in acquiring customers. A more complete figure includes sales team salaries and commissions, marketing software and tools, content production, and any other expense that directly supports the acquisition process. Leaving these out systematically understates CAC and can make an acquisition channel look more efficient than it genuinely is once the full cost is accounted for.

Some businesses calculate CAC separately per channel (paid ads vs. organic content vs. sales outreach) to understand which acquisition method is genuinely most efficient, rather than relying on a single blended figure that can mask a very profitable channel being subsidized by a much less efficient one.

Why CAC Should Always Be Read Against LTV

CAC on its own doesn't say whether marketing and sales spending is actually working — it only becomes meaningful when compared against customer lifetime value (LTV). A rising CAC isn't necessarily a red flag if LTV is rising faster, perhaps because the business is attracting higher-value customers or improving retention. A falling CAC isn't automatically good news either, if it's coming from a shift toward lower-quality customers who churn quickly and never generate enough lifetime value to justify even a lower acquisition cost.

A commonly cited rule of thumb targets an LTV:CAC ratio of at least 3:1 — meaning each customer's lifetime value should be at least three times what it cost to acquire them, leaving enough margin to cover operating costs and generate genuine profit beyond simply breaking even on acquisition spend.

Defining the Basics

  • CAC — customer acquisition cost, total acquisition-related spend divided by the number of new customers gained.
  • Blended CAC — CAC calculated across all marketing and sales channels combined.
  • LTV:CAC ratio — customer lifetime value divided by acquisition cost, used as a key efficiency benchmark.

An Example to Follow: A Marketing Campaign

$8,000 in total marketing and sales spend, resulting in 80 new customers:

CAC = $8,000 ÷ 80 = $100 per customer

If this business's average customer generates $350 in lifetime gross profit, the LTV:CAC ratio is $350 ÷ $100 = 3.5:1 — comfortably above the commonly cited 3:1 benchmark, suggesting this level of acquisition spending is sustainable given the customer value being generated.

CAC by Industry Table

IndustryTypical CAC Range
E-commerce (low-ticket)$10-50
SaaS (small business)$200-1,000
Enterprise B2B$1,000-10,000+

What Often Goes Wrong Calculating CAC

  • Counting only ad spend — sales salaries, commissions, and marketing tools should be included for an accurate acquisition cost figure.
  • Not comparing CAC against LTV — CAC alone doesn't reveal whether acquisition spending is actually generating a healthy return.
  • Using a single blended CAC across very different channels — can mask a highly efficient channel being offset by a much less efficient one.
This calculator is for general informational purposes only and is not a substitute for professional advice.