Customer Acquisition Cost (CAC) Calculator
BusinessCalculate how much it costs, on average, to acquire one new paying customer.
Customer Acquisition Cost
The average cost to acquire one new customer over this period.
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Creators
Odeh Ahwal0people find this calculator helpful
Views
Helpful
Saved
Embeds
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Frequently Asked Questions
What should be included in CAC?
CAC should include all sales and marketing costs over the period — ad spend, salaries of sales/marketing staff, software tools, and agency fees — divided by the number of new customers acquired in that same period.
How do I know if my CAC is too high?
Compare your CAC to your customer lifetime value (LTV). If LTV isn't at least 3x your CAC, or if it takes too long to recoup CAC through revenue, your acquisition spend may not be sustainable.
How can I lower my CAC?
Improving conversion rates, targeting higher-intent audiences, increasing referrals and organic growth, and improving ad creative/targeting efficiency are the most common ways to reduce CAC over time.
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