Finance

Customer Acquisition Cost Calculator

Find CAC — the average cost to acquire one new customer.


Customer Acquisition Cost Calculator

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A building block this site’s customer lifetime value calculator uses directly — LTV alone says nothing about whether growth is profitable until it’s compared against what each customer costs to acquire.

How it works

Total sales and marketing spend for a period is divided by the number of new customers acquired in that same period.

What this does not include

This uses total spend divided by total new customers — a business running multiple channels with very different costs per customer may want to compute CAC per channel separately rather than one blended figure.

How to use this calculator

  1. Enter total sales and marketing spend and new customers acquired for the same period.

A worked example

$100,000 in acquisition spend bringing in 500 new customers: CAC = 100,000 ÷ 500 = $200 per customer.

What the variables mean

Variable Meaning
Spend Total marketing and sales spend for the period
New customers Number of new customers acquired during that period

Edge cases worth knowing

CAC alone doesn’t say whether the spend was worthwhile — that requires comparing it against customer lifetime value (see this site’s LTV:CAC ratio calculator), since a high CAC can still be profitable if customers generate enough revenue over time.

Zero new customers makes CAC undefined — there’s no acquisition count to divide spend by, so the calculator returns no result.

Frequently asked questions

What counts as “spend” for CAC?

All sales and marketing costs for the period — ad spend, salaries for sales and marketing staff, tools, and related overhead — not just media spend alone.

Is a lower CAC always better?

Generally, yes, but CAC means little on its own — it has to be compared against LTV; this site’s LTV calculator computes that ratio directly.

Should CAC include existing-customer marketing?

No — CAC is meant to isolate the cost of acquiring new customers specifically, so spend aimed at retaining or upselling existing customers shouldn’t be included in the numerator.

Important: This is general information, not financial advice. Figures are estimates, and your lender or provider decides the real numbers. Check with a qualified adviser before acting on them.

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Written by

M. Whitfield

Personal finance writer

M. Whitfield writes the personal finance calculators, covering loans, mortgages, savings, tax and investment maths. The focus is on showing exactly which number goes into a formula and which assumptions a result depends on, so readers can tell when a figure applies to their situation and when it does not. Every finance page states what it does not account for as plainly as what it does.

Reviewed by

A. Whitfield-Reyes

Calculator reviewer — finance

A. Whitfield-Reyes reviews the finance calculators, checking compounding conventions, rate-period alignment, and whether each page is explicit about the costs and tax treatment it leaves out. Financial results are easy to state with false precision, so review focuses on whether the page makes its assumptions visible to a reader who is not looking for them.

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