Customer Acquisition Cost (CAC) Calculator

How much does it really cost to get a new customer? Use our simple CAC calculator to measure your campaign profitability.

Inputs

$

Include ad spend, agency fees, tool subscriptions, etc.

Results

Customer Acquisition Cost (CAC)

$0.00

per customer

What is CAC?

Customer Acquisition Cost (CAC) is the total amount of money a business spends to acquire a single new customer.

Formula

CAC = Total Marketing & Sales Costs ÷ New Customers Acquired

Example: If you spent $5,000 to get 250 new customers, your CAC is $20.

It's a critical metric for understanding the profitability and scalability of your business. A successful business model requires a customer's lifetime value (LTV) to be higher than the cost to acquire them.

FAQ

What costs should I include in CAC?
Be thorough. You should include all expenses related to acquiring customers within a specific period: advertising spend (Google Ads, Facebook Ads, etc.), agency or contractor fees, content creation costs, and subscriptions for marketing tools (e.g., email marketing platforms).
What is a "good" CAC?
A 'good' CAC is one that is significantly lower than your Customer Lifetime Value (LTV). There is no magic number, as it depends on your product's price and customer loyalty. A commonly accepted benchmark for a sustainable business is an LTV to CAC ratio of 3:1 or higher.
How can I lower my CAC?
You can lower your CAC by: 1) Improving your website's conversion rate (CRO). 2) Refining your ad targeting to reach a more relevant audience. 3) Increasing your organic traffic through SEO and content marketing. 4) Implementing a customer referral program to encourage word-of-mouth marketing.
← Back to All Tools