CAC Calculator
Calculate your Customer Acquisition Cost and see if your marketing spend is efficient. Compare your CAC to industry benchmarks.
How to Calculate CAC
Enter Marketing Spend
Input your total marketing and sales spend for the period you want to measure.
Enter New Customers
Input the number of new customers you acquired during that same period.
Get Your CAC
See your CAC, industry benchmarks, and actionable advice to improve acquisition efficiency.
Frequently Asked Questions
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer. It's calculated by dividing your total marketing and sales spend by the number of new customers acquired in that period. For example, if you spent $5,000 on marketing and gained 100 customers, your CAC is $50.
What is a good CAC?
A good CAC varies by industry. For e-commerce, $30-$50 is generally good. For SaaS, $100-$200 is typical. The key metric is your LTV:CAC ratio — ideally 3:1 or higher, meaning each customer generates at least 3x what you spent to acquire them.
How do I lower my CAC?
To lower CAC: (1) improve ad targeting to reach more qualified prospects, (2) optimize landing pages for higher conversion rates, (3) test more ad creative variations to find top performers, (4) leverage organic channels like SEO and content marketing, and (5) implement referral programs for word-of-mouth growth.
What costs should I include in CAC?
Include all marketing and sales costs: ad spend, marketing team salaries, agency fees, marketing tools/software, content creation costs, and sales team costs. Some businesses only calculate 'paid CAC' using ad spend alone, which is useful for evaluating ad channel efficiency specifically.
How is CAC different from CPA?
CAC (Customer Acquisition Cost) measures the full cost to acquire a paying customer, including all marketing and sales expenses. CPA (Cost Per Acquisition) typically refers to the cost of a specific conversion event (like a signup or purchase) from a single ad campaign. CAC is a business-level metric; CPA is a campaign-level metric.
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