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Home Growth CAC Calculator

CAC Calculator

Calculate your Customer Acquisition Cost (CAC) to understand how much you spend to acquire a single customer.

Calculator

Include all ad spend, salaries, tools, and overhead for a specific period.
$
The total number of new customers acquired during the same period.
CUSTOMER ACQUISITION COST
$100.00
Moderate

Standard for many B2B and high-ticket B2C businesses.

Formula

CAC = Total Marketing & Sales Spend ÷ New Customers Acquired

Worked example

If you spent $5,000 on marketing and sales in a month and acquired 50 new customers, your CAC would be: CAC = $5,000 ÷ 50 = $100 per customer.

Total Marketing & Sales Spend
5000
New Customers Acquired
50

Industry benchmarks

High

Acquisition costs are high. Ensure your LTV justifies this spend.

Moderate

Standard for many B2B and high-ticket B2C businesses.

Efficient

Highly efficient acquisition. Great potential for scaling.

FAQ & key takeaways

How to read this metric

What it measures

Customer Acquisition Cost (CAC) is the total cost of winning a customer to purchase a product or service. It is a fundamental metric for evaluating the sustainability and profitability of your growth strategy.

Why it matters

CAC allows you to determine if your business model is viable. In a healthy business, the value a customer brings (LTV) should significantly exceed the cost to acquire them. High CAC relative to LTV is one of the most common reasons startups fail.

How to reduce CAC

  1. Improve Conversion Rates: Optimize your website and landing pages to turn more visitors into customers.
  2. Focus on High-ROI Channels: Identify which marketing channels bring in customers at the lowest cost and double down on them.
  3. Automate Sales & Marketing: Use tools to streamline lead generation and nurturing, reducing manual labor costs.
  4. Referral Programs: Encourage existing customers to refer new ones, effectively lowering the cost of acquisition for those new customers.