How to Calculate Customer Acquisition Cost
What is Customer Acquisition Cost?
Customer Acquisition Cost (CAC) is the total marketing and sales spend required to acquire one new paying customer. Low CAC relative to Customer Lifetime Value (LTV) indicates a healthy business.
Formula
Step-by-Step Guide
- 1CAC = Total marketing & sales spend / New customers acquired
- 2Track over a specific period (month, quarter, year)
- 3LTV:CAC ratio > 3:1 is generally considered healthy
- 4Payback period = CAC / Monthly gross margin per customer
Worked Examples
Frequently Asked Questions
What is Cac Calc?
Customer Acquisition Cost (CAC) is the total marketing and sales spend required to acquire one new paying customer. Low CAC relative to Customer Lifetime Value (LTV) indicates a healthy business
How accurate is the Cac Calc calculator?
The calculator uses the standard published formula for cac calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Cac Calc calculator use?
This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Cac Calc calculator use?
The core formula is: CAC = Total marketing & sales spend / New customers acquired. Each step in the calculation is shown so you can verify the result manually.
Ready to calculate? Try the free Customer Acquisition Cost Calculator
Try it yourself →