CAC Calculator
Measure what it costs to acquire each new customer from sales and marketing spend.
Calculator
Same period as the new customers (month or quarter).
Results
CAC
$500.00
Cost to acquire one customer
What this means
Treat CAC as “what you paid per new customer” for this period. Pair with LTV and payback before scaling spend.
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CAC Summary
CAC = Sales & marketing spend ÷ New customers. Compare it to LTV—cheap acquisition with high churn still fails.
Explanation
CAC is fully loaded acquisition cost per new customer for the period.
Business implication: rising CAC without rising LTV compresses paybacks and growth efficiency.
Step-by-step example
Spend $20,000, new customers 40:
- CAC: $20,000 ÷ 40 = $500
Formula
CAC = Sales & marketing spend ÷ New customers
Helpful tips
- Segment CAC by channel—blended CAC hides expensive acquisition sources.
- Feed CAC into the LTV:CAC Ratio Calculator with a matching LTV.
FAQ
What is CAC?
Customer acquisition cost is how much you spend in sales and marketing to win one new paying customer in a period.
What costs belong in CAC?
Typically ads, marketing tools, sales salaries/commissions, and agency fees for the same period you count new customers. Exclude R&D and general G&A unless you intentionally use a fully loaded CAC.
Should free trials count as customers?
Usually count customers when they convert to paid. Counting trials inflates the denominator and understates true CAC.
How accurate is this calculator?
It is exact for spend ÷ new customers. Attribution timing (spend this month, close next month) can skew a single period.
Related tools
Key terms
CAC
Definition. Customer acquisition cost—what you spend, on average, to win one new customer.
In simple terms. CAC usually includes ads, sales time, tools, and related acquisition spend for a period, divided by new customers won in that period.
CAC = acquisition spend ÷ new customers acquired
Example. $5,000 marketing spend and 25 new customers → $200 CAC.
Common mistake. Excluding sales labor or counting leads instead of paying customers.
Related calculators. CAC Calculator, LTV:CAC Ratio Calculator
Related terms. LTV, LTV:CAC ratio, ROI
LTV
Definition. Customer lifetime value—estimated gross profit (or revenue, depending on model) from a customer over the relationship.
In simple terms. LTV helps you decide how much you can spend to acquire a customer. Simple models use average revenue, margin, and lifespan or churn.
Common simple form: LTV ≈ ARPU × gross margin × average customer lifespan
Example. $50/month, 70% margin, 24-month average life → LTV ≈ $840 in that model.
Common mistake. Using revenue LTV against costs that need gross-profit LTV—or ignoring churn.
Related calculators. LTV Calculator, LTV:CAC Ratio Calculator
Related terms. CAC, LTV:CAC ratio, MRR
LTV:CAC ratio
Definition. How customer lifetime value compares to what it costs to acquire that customer.
In simple terms. A higher ratio generally means acquisition is more efficient—though “good” targets depend on margins, payback period, and growth stage. It is a directional health check, not a law.
LTV:CAC = LTV ÷ CAC
Example. LTV $800 and CAC $200 → 4:1 LTV:CAC.
Common mistake. Optimizing the ratio by under-investing in growth, or comparing ratios built with different LTV definitions.
Related calculators. LTV:CAC Ratio Calculator, LTV Calculator, CAC Calculator
Notes & Assumptions
CAC is a standard SaaS unit-economics metric used with LTV and payback period.
Last reviewed: July 2026