Customer Acquisition Cost Calculator
Calculate your customer acquisition cost by dividing total sales and marketing spend by the number of new customers won.
Your results
Calculation breakdown
- CAC
- Sales & marketing spend ÷ New customers acquired
Worked example
A business spending $15,000 on marketing in a quarter that won 100 new customers has a CAC of $150 per customer.
Assumptions
- Include only sales and marketing costs directly aimed at acquiring new customers.
- Use the same period for spend and new customer counts.
- Compare CAC against customer lifetime value to judge sustainability.
How this calculator works
Divide total sales and marketing spend for a period by the number of new customers acquired in that period to calculate CAC. Compare this against customer lifetime value to judge whether acquisition spend is sustainable.
Frequently asked questions
What costs should be included?
Include advertising spend, sales salaries and commissions, and marketing tool costs directly tied to acquiring customers.
What's a good CAC to lifetime value ratio?
A commonly used rule of thumb is customer lifetime value should be at least three times CAC, though this varies by industry.
Should CAC include existing customer retention costs?
No, CAC should only include costs of acquiring new customers, not costs spent retaining or upselling existing ones.
Results are estimates only and are not financial, tax, legal or credit advice.