CAC Calculator
Calculate customer acquisition cost across marketing channels.
Enter total marketing costs and new customer count.
Determine exact unit cost per paying customer acquired.
Acquiring 160 customers for $8,000.00 requires an average acquisition investment of $50.00 per customer.
Formulas & Logic
Transparent mathematical formulas behind this calculation engine.
Customer Acquisition Cost ($)
CAC = Total Acquisition Costs ÷ New Customers AcquiredThe average fully blended cost required to win a single new customer.
Worked Example
SaaS Monthly Customer Acquisition ($8k Spend / 160 Customers)
A subscription service spends $8,000.00 across search ads, content marketing, and sales tools, acquiring 160 new paying subscribers.
- Total Spend
- $8,000.00
- New Customers
- 160 customers
- Customer Acquisition Cost
- $50.00
- Customers Acquired
- 160
- Total Investment
- $8,000.00
- CAC = $8,000.00 ÷ 160 = $50.00 per customer
Takeaway: The company invested an average of $50.00 to acquire each new paying subscriber.
Methodology & Assumptions
Underlying definitions and operational accounting principles.
- Fully Loaded Spend
- Includes ad spend, marketing salaries, agency fees, and sales enablement software tools.
- New Customers Only
- Counts only newly acquired customer accounts, excluding returning or renewed users.
Frequently Asked Questions
Practical answers regarding margins, markups, and pricing strategy.
How is CAC calculated?
Customer Acquisition Cost (CAC) is calculated by dividing total sales and marketing expenditures by the number of new customers acquired during that specific time frame: CAC = Total Acquisition Costs ÷ New Customers Acquired. Ensure the cost and customer metrics cover the identical period.
What is a good Customer Acquisition Cost (CAC)?
A sustainable CAC depends on Customer Lifetime Value (LTV). An LTV:CAC ratio of 3:1 or higher is standard for healthy, scalable business growth.
What is the difference between blended CAC and paid CAC?
Blended CAC divides all marketing costs by all new customers (including organic). Paid CAC divides paid ad spend exclusively by customers acquired through paid channels.
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