Marketing
CAC Calculator
Calculate customer acquisition cost from total sales and marketing spend, or reverse the formula to estimate spend and customer volume.
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Enter spend and customer values to calculate CAC.
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CAC Formula
Calculate CAC
CAC = Spend / New Customers
Calculate Spend
Spend = CAC x New Customers
Calculate Customers
Customers = Spend / CAC
What is customer acquisition cost?
Customer acquisition cost shows the average amount spent to win one new customer. It combines your go-to-market investment with actual acquisition output.
CAC is a core unit economics metric because it helps you judge channel efficiency, budget payback speed, and whether growth is sustainable relative to customer lifetime value.
Frequently asked questions
What is CAC?
CAC stands for customer acquisition cost. It measures how much your company spends on sales and marketing to acquire one new paying customer during a given period.
How do I calculate CAC?
Divide total sales and marketing spend by the number of new customers acquired over the same period. For example, $50,000 in spend generating 200 new customers equals a $250 CAC.
Why should CAC be compared with CLV?
CAC by itself only shows acquisition cost. Comparing CAC with customer lifetime value tells you whether acquisition economics are sustainable.
What is a good CAC to CLV ratio?
A CLV-to-CAC ratio of 3:1 or higher is often cited as a healthy benchmark for SaaS and subscription businesses. A ratio below 1:1 means you are spending more to acquire a customer than they are worth over their lifetime.
How can I reduce my CAC?
Improving conversion rates at each funnel stage, investing in organic channels like SEO and content, leveraging referral programs, and tightening audience targeting in paid campaigns can all reduce CAC without cutting total spend on growth.