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Marketing & Advertising

CAC Calculator

Calculate customer acquisition cost from total acquisition spend and new customers, with guidance on what to include in that cost.

New customers can be a decimal if your reporting attributes fractional credit across channels.

What counts as "acquisition cost"?

There's no single universal accounting definition. Some teams use ad spend alone; others include sales team salaries, tools, and content production costs attributable to acquiring customers. Ad spend alone will understate your true CAC if a sales team or other marketing costs also contributed — decide what to include based on what decision you're trying to make, and be consistent when comparing CAC over time.

Calculated entirely in your browser — nothing you enter here is sent to a server.

Customer Acquisition Cost (CAC) is your total cost to acquire one new customer — CAC = Acquisition Cost ÷ New Customers. What counts as "acquisition cost" is a decision you make, not a universal accounting rule.

This is a broader, different metric from CPA: CPA typically measures cost per action within a single ad platform, while CAC is meant to capture your true total cost of winning a customer, which may span multiple channels and teams.

Blended vs paid CAC, and payback

CAC = acquisition cost ÷ new customers, for the same period. What you count as cost changes the answer:

  • Blended (fully loaded) CAC includes ad spend plus sales and marketing salaries, tools and agencies. $30,000 of ads and $15,000 of team costs for 150 new customers is $45,000 ÷ 150 = $300.
  • Paid CAC counts ad spend only: $30,000 ÷ 150 = $200. It flatters the result, so label which one you report.

To see how long a customer takes to repay that cost, divide CAC by the monthly gross profit per customer. At $50 a month and an 80% gross margin, a $300 CAC pays back in 300 ÷ 40 = 7.5 months. TheLTV calculator does this alongside lifetime value, and thechurn calculator gives you the churn rate it needs.

How to use the CAC Calculator

  1. Add up everything you count as acquisition spend for the period and enter it in "Total acquisition cost ($)".
  2. Enter the number of customers won in that same period in "New customers acquired".
  3. Click Calculate to see your CAC and the formula used.
  4. Click Reset to clear both fields.

Example: A quarter of acquisition spend

A team spends $15,000 in a quarter on ads, tools, and a share of sales salaries and wins 120 new customers. Entering 15000 and 120 and clicking Calculate shows $125 as the Customer Acquisition Cost. Entering 1000 and 3 shows $333.33.

Questions about the CAC Calculator

How is the result rounded?
The cost per customer is shown to at most two decimal places, so $1,000 spread across 3 customers displays as $333.33.
What happens if I enter zero new customers?
The tool will not calculate and shows "New customers cannot be zero — CAC is undefined without any new customers." Negative cost or customer values are rejected too.
Should cost and customers cover the same time period?
Yes. The tool divides the two numbers you give it and has no date range of its own, so mixing a full year of spend with one month of customers gives a misleading CAC.
How do I compare CAC with what a customer is worth?
Calculate customer lifetime value separately with the LTV Calculator, then compare the two figures for the same customer group and period.
Should CAC include salaries?
For a fully loaded (blended) CAC, yes: include the sales and marketing salaries, tools and agency fees spent on winning customers. Ad-spend-only CAC is useful for comparing campaigns, but always say which version you report.
What is CAC payback?
The months a new customer takes to repay their acquisition cost: CAC ÷ monthly gross profit per customer. A $300 CAC with $50 of monthly revenue at an 80% margin pays back in 7.5 months.