CAC Calculator
Customer acquisition cost (CAC) is the total spent on marketing and sales divided by the number of new customers won.
What is CAC?
CAC includes ad spend plus team, tools and other acquisition costs. Comparing CAC with lifetime value (LTV) shows whether growth is sustainable.
How to use the CAC calculator (formula)
What each field means
- Marketing spend — Ad and marketing spend.
- Sales & team costs — Sales team or agency costs.
- Tools & other costs — Tools and other acquisition costs.
- New customers — New customers in the same period.
Worked example
Using these numbers: marketing spend $8,000, sales & team costs $2,000, tools & other costs $500.00, new customers 300.
The customer acquisition cost is $35.00.
- Total acquisition spend: $10,500
What is a good CAC?
A common rule is LTV at least 3× CAC, with CAC paid back within 12 months.
Tips to improve your result
- Count only new customers, not repeat buyers.
- Include agency and tool costs for the true CAC.
- Track CAC by channel.
- Pair CAC with LTV and payback period.
Frequently asked questions
What is the CAC formula?
CAC = (marketing + sales + other acquisition costs) ÷ new customers.
CAC vs CPA?
CPA is cost per conversion from ads; CAC is the full cost per new customer.
What is a good LTV:CAC ratio?
3:1 or better is widely used as healthy.
How do I lower CAC?
Improve conversion rate, referrals, retention and organic channels.
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