Business

Verified calculator with a transparent formula

Business

Customer Acquisition Cost Calculator.

Calculates the total cost to acquire a new customer by dividing total marketing and sales expenses by the number of new customers acquired.

Results update live as you type.
ƒ

Your inputs

How it works

  1. 1

    Enter your total marketing spend for the period.

  2. 2

    Enter your total sales spend (salaries, commissions, tools) for the same period.

  3. 3

    Enter the number of new customers acquired during that period.

  4. 4

    The calculator sums the spends and divides by new customers to get CAC.

(marketing_spend + sales_spend) / new_customers

Frequently asked questions

What is a good customer acquisition cost?

It depends on your industry and customer lifetime value. A common rule is CAC should be less than one-third of customer lifetime value (LTV).

Should I include salaries in sales spend?

Yes, include all costs directly tied to acquiring customers, such as sales team salaries, commissions, and marketing tools.

How often should I calculate CAC?

Calculate it monthly or quarterly to track trends and adjust your marketing and sales strategies.

Explore this calculator category

BusinessBrowse all

Results

Formula checked

Customer Acquisition Cost

$0.00$

Ask Anything

Estimate for general guidance only — verify important decisions with an appropriate professional.

How it works

Calculates the total cost to acquire a new customer by dividing total marketing and sales expenses by the number of new customers acquired.

  1. Enter your total marketing spend for the period.
  2. Enter your total sales spend (salaries, commissions, tools) for the same period.
  3. Enter the number of new customers acquired during that period.
  4. The calculator sums the spends and divides by new customers to get CAC.

Formulas

The math behind this calculator, written out so you can verify the result.

Customer Acquisition Cost

CAC = (Marketing Spend + Sales Spend) / New Customers

This formula gives the average cost to acquire one new customer by dividing total acquisition expenses by the number of customers gained.

Example:

Input: Marketing = $5,000, Sales = $2,000, New Customers = 100

Calculation: (5000 + 2000) / 100

Result: $70 per customer

Real-world use cases

Where this calculation shows up in everyday life.

Budget Planning

Determine how much you need to spend to acquire a target number of customers.

Example: If you want 200 new customers and your CAC is $50, budget $10,000.

Channel Comparison

Compare CAC across different marketing channels to allocate budget effectively.

Example: Calculate CAC for social ads vs. email campaigns.

Pricing Strategy

Set product prices that cover acquisition costs while maintaining profit margins.

Example: If CAC is $30 and your margin per sale is $50, you are profitable.

Tips and common mistakes

Tips

  • Track all acquisition costs, including software subscriptions and freelance fees.
  • Segment CAC by channel to identify the most efficient marketing methods.
  • Compare CAC to customer lifetime value (LTV) to ensure sustainable growth.
  • Review CAC regularly and adjust strategies if it increases over time.

Common Mistakes to Avoid

  • Forgetting to include all sales and marketing expenses, leading to an underestimated CAC.
  • Using total customers instead of new customers, which distorts the metric.
  • Ignoring the time period, making comparisons between different periods invalid.

Assumptions and limitations

  • Use the stated inputs and units.
  • Results are estimates for planning and education.
  • Check measurements and source data before making an important decision.