Customer Acquisition Cost Calculator

Calculate your cost per customer acquisition and optimize your marketing spend

Our free CAC calculator helps you measure key metrics including:

  • Cost Per Customer Acquisition
  • Marketing Efficiency Ratio
  • Monthly Acquisition Cost
  • Customer Value Analysis
Enter your total marketing and sales expenses
How many new customers you gained
Period over which customers were acquired

About This Calculator

Our CAC calculator helps you measure how much it costs to acquire new customers and optimize your marketing spend for better efficiency.

  • Calculate cost per acquisition
  • Analyze monthly trends
  • Compare industry benchmarks
  • Get optimization insights

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Frequently Asked Questions

Expert answers about Customer Acquisition Cost calculation and optimization

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) is a critical business metric that measures the total cost of acquiring a new customer. It's particularly important for SaaS, e-commerce, and subscription-based businesses where customer lifetime value plays a crucial role. CAC helps evaluate marketing efficiency, scalability, and overall business health.

How is CAC calculated?

While the basic formula is Total Marketing & Sales Costs / New Customers Acquired, sophisticated businesses track CAC by:
  • Marketing channel (Paid ads vs Organic)
  • Customer segment (Enterprise vs SMB)
  • Geography (Different markets)
This granular tracking enables more strategic budget allocation and optimization.

What's a good CAC benchmark?

Good CAC varies by industry:
  • B2B SaaS: $200-$300 for SMB, $7000-$10000 for enterprise
  • E-commerce: $15-$200 depending on product category
  • Financial Services: $100-$500
A healthy business typically maintains a 3:1 LTV:CAC ratio and recovers CAC within 12 months.

How can I reduce my CAC?

Modern strategies to reduce CAC include:
  • Implementing product-led growth strategies
  • Utilizing AI for ad targeting optimization
  • Developing customer advocacy programs
  • Optimizing onboarding processes
  • Using predictive analytics for better targeting
  • A/B testing landing pages and conversion paths

What costs should I include in CAC?

Include all acquisition-related costs:
  • Marketing and advertising spend
  • Sales team salaries and commissions
  • Technology stack costs (CRM, automation tools)
  • Content creation and marketing overhead
  • Sales enablement and training costs
  • Customer support during sales process
  • Partner and referral program fees

How does CAC relate to other metrics?

CAC should be analyzed alongside:
  • Customer Lifetime Value (LTV) - Should be 3x higher than CAC
  • Payback Period - Time to recover CAC
  • Customer Retention Rate - Affects overall profitability
  • Net Revenue Retention - Growth from existing customers
  • Marketing Qualified Lead (MQL) cost - Part of CAC breakdown

How do different channels affect CAC?

CAC varies significantly by channel:
  • Organic Search: Lower CAC but longer timeframe
  • Paid Advertising: Higher immediate CAC but scalable
  • Content Marketing: High upfront cost, low long-term CAC
  • Referral Programs: Often lowest CAC but limited scale
  • Social Media: Varies by platform and targeting
Track channel-specific CAC to optimize your marketing mix.

How often should I monitor CAC?

Monitoring frequency depends on your business:
  • Early-stage companies: Weekly or monthly tracking
  • Enterprise businesses: Quarterly analysis
  • E-commerce: Daily or weekly monitoring
Always analyze CAC trends alongside conversion rates, customer quality, and retention metrics for a complete picture.