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Customer Acquisition Cost Calculator

Free

Calculate your Customer Acquisition Cost (CAC) by combining total marketing and sales spend divided by new customers acquired. Optionally enter customer lifetime value to check your LTV:CAC ratio against the 3:1 industry benchmark.

Enter your spend figures and number of customers acquired to calculate CAC.

How to use the Customer Acquisition Cost Calculator

  1. 1Enter your total marketing spend for the period (ad spend, agency fees, tools, etc.).
  2. 2Enter your total sales spend (salesperson salaries, commissions, CRM costs).
  3. 3Enter the number of new customers acquired in the same period.
  4. 4Optionally enter your Average Customer Lifetime Value to see your LTV:CAC ratio.
  5. 5Review your CAC, monthly equivalent, and whether your LTV:CAC ratio is healthy, acceptable, or too low.

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Customer Acquisition Cost Calculator FAQs

What is Customer Acquisition Cost (CAC)?

CAC is the total cost of acquiring a new customer, calculated as (Total Marketing Spend + Total Sales Spend) ÷ Number of New Customers Acquired. It is one of the most important unit economics metrics for any business.

What is a healthy LTV:CAC ratio?

The industry standard benchmark is 3:1 — meaning for every $1 spent to acquire a customer, you should earn $3 back over their lifetime. A ratio below 1.5:1 suggests your acquisition costs are unsustainably high relative to revenue.

How can I reduce my CAC?

Common strategies include improving conversion rates on landing pages, investing in organic channels (SEO, content) which have lower marginal cost, improving lead qualification so sales teams focus on high-probability deals, and building referral programmes.

Should I include headcount costs in CAC?

Yes — a fully-loaded CAC should include the salaries of your marketing and sales teams, not just media spend. Many companies underestimate CAC by excluding people costs, which leads to optimistic unit economics.

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