CAC Calculator
Calculate what it costs to acquire each new customer. Compare acquisition costs across marketing channels to optimize your spending.
How the CAC Calculator works
Add up all marketing and sales costs, divide by new customers acquired. See your cost per customer, compare to customer value, and identify which channels work best.
High customer acquisition cost kills growth. Know exactly what you pay for each customer so you can optimize marketing spend and grow profitably.
How it works
Tutorial
Customer Acquisition Cost (CAC) determines if your business can grow profitably. If it costs you $500 to acquire a customer who only spends $300, you’ll go broke growing. This guide shows you how to calculate and optimize CAC.
You have two options: use the calculator above for instant CAC analysis, or follow this guide to calculate acquisition costs manually.
The Formula
| What to Calculate | How to Calculate It |
|---|---|
| CAC | Total Marketing and Sales Costs ÷ New Customers |
| LTV:CAC Ratio | Customer Lifetime Value ÷ CAC |
| Payback Period | CAC ÷ Monthly Profit per Customer |
Step-by-Step Example
Let’s calculate CAC for a business that acquired 150 customers last month.
Step 1: Add Up All Acquisition Costs
List everything you spent on marketing and sales:
| What You Spent Money On | Monthly Cost |
|---|---|
| Digital Advertising (Google, Facebook, etc.) | $15,000 |
| Content Marketing | $5,000 |
| Sales Team Salaries | $20,000 |
| Marketing Software | $2,000 |
| Events and Sponsorships | $3,000 |
| Total Acquisition Costs | $45,000 |
Calculation:$15,000 + $5,000 + $20,000 + $2,000 + $3,000 =$45,000
Step 2: Calculate Cost Per Customer
Divide total cost by new customers:
| What to Calculate | Amount |
|---|---|
| Total Acquisition Costs | $45,000 |
| New Customers Acquired | 150 |
| Cost Per Customer (CAC) | $300 |
Calculation:$45,000 ÷ 150 =$300 per customer
Step 3: Check If CAC Is Healthy
Compare CAC to customer value:
| Metric | Amount | Target |
|---|---|---|
| CAC (what you pay) | $300 | – |
| Customer Lifetime Value | $1,200 | – |
| LTV:CAC Ratio ($1,200 ÷ $300) | 4:1 | 3:1 or better |
| Payback Period ($300 ÷ $50 profit/month) | 6 months | Under 12 months |
Final Answer:CAC is$300with a healthy 4:1 value ratio
What This Means
A 4:1 ratio means you earn $4 for every $1 spent acquiring customers – that’s healthy. Below 3:1 means you’re spending too much. Above 6:1 suggests you should spend more on marketing to grow faster.
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