Customer Acquisition Cost (CAC) Calculator
Customer acquisition cost (CAC) is what you spend, on average, to win one new customer. It's a cornerstone metric for judging whether your growth is profitable.
Your details
- Total spend
- $8,000.00
Marketing vs sales spend
- Marketing
- $5,000.0063%
- Sales
- $3,000.0038%
Formula
CAC = (marketing spend + sales spend) ÷ new customers acquired, over the same period.
How it works
CAC only means something next to lifetime value (LTV). A healthy SaaS business often targets an LTV:CAC ratio of about 3:1 — if you spend $40 to acquire a customer worth $840, you're in great shape.
Frequently asked questions
What is a good CAC?⌄
There's no universal number — it depends on your price and margins. The key is that your customer lifetime value is comfortably higher than your CAC, often around 3× or more.
What costs go into CAC?⌄
All sales and marketing costs to acquire customers in a period: ad spend, salaries, tools, agencies, and commissions — divided by the customers won in that period.
How do I lower CAC?⌄
Improve conversion rates, lean on organic and referral channels, sharpen targeting, and shorten the sales cycle. Retention also helps by raising LTV against the same CAC.
Sources & methodology
Total sales + marketing spend ÷ new customers for the period. Simple average; excludes payback-period timing.
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