What Is a CAC Calculator?
A Customer Acquisition Cost (CAC) calculator measures how much your business spends to acquire each new customer. It divides total marketing and sales expenses by the number of new customers gained during a period. CAC is a fundamental metric for evaluating the efficiency of your growth engine and ensuring your business model is sustainable.
How to Use This CAC Calculator
- Enter your total marketing costs for the period (ads, content, tools, etc.).
- Enter your total sales costs (salaries, commissions, CRM, etc.).
- Input the number of new customers acquired.
- Optionally, enter your CLV to see the LTV:CAC ratio.
- Click “Calculate” to see your CAC and ratio analysis.
CAC and the LTV:CAC Ratio
The LTV:CAC ratio compares Customer Lifetime Value to Customer Acquisition Cost. A ratio of 3:1 is widely considered the gold standard—you earn three dollars for every dollar spent acquiring a customer. Below 1:1 means you are losing money on each customer. Above 5:1 may suggest you are under-investing in growth.
CAC = (Marketing + Sales) ÷ New Customers
Frequently Asked Questions
What costs should I include in CAC?
Include all marketing expenses (advertising, content creation, tools) and sales expenses (salaries, commissions, travel, CRM software). Some companies also include overhead allocated to these teams.
How often should I calculate CAC?
Monthly or quarterly is typical. Tracking CAC over time reveals whether your acquisition is becoming more or less efficient, and helps you make better budgeting decisions.