Customer Acquisition Cost Calculator: Know Your Numbers
Find out exactly how much you spend to win each new customer.
4 min524 words
Calculate customer acquisition cost with our free online tool. Get instant results with helpful explanations and tips for better understanding.
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Customer Acquisition Cost Calculator
Calculate customer acquisition cost with our free online tool. Get instant results with helpful explanations and tips for better understanding.
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What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) Calculator determines how much you spend to acquire each new customer, including marketing and sales expenses. It's a key metric for business profitability.
How to use
Enter your total marketing and sales costs for a period, and the number of new customers acquired. The calculator shows your CAC per customer.
Frequently Asked Questions
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total cost associated with acquiring a new customer. It includes all marketing and sales expenses over a specific period divided by the number of new customers acquired during that period.
How is CAC calculated?
CAC is calculated using the formula: (Total Marketing Costs + Total Sales Costs) / Number of New Customers Acquired.
What expenses should be included in the calculation?
You should include all direct and indirect costs related to sales and marketing, such as advertising spend, marketing team salaries, sales commissions, software subscriptions, creative costs, and agency fees.
Why is knowing my CAC important?
Knowing your CAC helps determine the profitability of your business, sets a baseline for how much you can afford to spend on marketing, and measures the efficiency of your sales teams.
What is a good CAC?
A 'good' CAC varies by industry and business model. Generally, you want your CAC to be significantly lower than your Customer Lifetime Value (LTV). A common benchmark is a LTV:CAC ratio of 3:1.
Does this calculator include organic customers?
This calculator provides a blended CAC, meaning it spreads the total sales and marketing budget over all new customers, regardless of whether they came from paid ads or organic channels. To calculate paid CAC, you would only input costs related to paid campaigns.
What is the difference between Blended CAC and Paid CAC?
Blended CAC includes all sales and marketing expenses divided by all new customers. Paid CAC includes only specific ad spend divided by customers acquired through those specific ads. Blended CAC gives a holistic view, while Paid CAC measures specific channel efficiency.
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