Finance calculator
CAC Calculator
Use this CAC calculator to estimate average customer acquisition cost over a defined period using sales and marketing spend and new customer count. CAC is most useful when the time window is consistent, but it should also be reviewed alongside customer quality, payback period, retention, lifetime value, and the difference between blended CAC and paid CAC.
What's a good LTV:CAC ratio?
See the benchmark bands (3:1 healthy, 4:1 strong) and industry targets in the LTV:CAC ratio guide.
How to use this calculator
- Enter sales and marketing spend for a specific period, such as one month or one quarter.
- Enter the number of new customers acquired in that same period so the numerator and denominator match.
- Interpret CAC as an average acquisition cost, then decide whether you are measuring blended CAC across all channels or paid CAC for paid campaigns only.
Formula
- CAC = sales and marketing spend / number of new customers
Example calculation
If sales and marketing spend is $15,000 and 120 new customers are acquired in the same period, CAC is $125 per customer.
How to interpret the results
- Make sure sales and marketing spend and new customer count use the same time period.
- Compare CAC with customer lifetime value, margin, retention, sales cycle length, and payback period before judging performance.
- As a rough SaaS benchmark, aim for a lifetime-value-to-CAC (LTV:CAC) ratio near 3:1 — below about 1:1 you lose money on each customer, around 3:1 is healthy, and 5:1 or higher can signal you are under-investing in growth.
- Be clear whether the result is blended CAC across all acquisition activity or paid CAC for paid campaigns only.
Frequently asked questions
What costs should be included in CAC?
Common inputs include ad spend, sales tools, marketing software, agency costs, creative costs, and sales or marketing labor for the same measurement period. Exclude unrelated operating costs unless your team intentionally uses a broader definition.
What if no new customers were acquired?
CAC cannot be calculated by dividing by zero. The calculator will ask for at least one new customer.
Is lower CAC always better?
Not always. CAC should be considered with customer quality, retention, payback period, margin, and lifetime value.
What is the difference between blended CAC and paid CAC?
Blended CAC divides total acquisition spend by all new customers. Paid CAC usually focuses on paid media spend and customers attributed to paid channels. Mixing the two can make comparisons misleading.
Why does time period consistency matter?
CAC can be distorted if spend is counted in one period and customers are counted in another. Use matching windows or document the lag between campaign spend and customer conversion.
Planning disclaimer
MoneyHackWise calculators are for general informational and planning purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.
Related guides
- How to Compare CAC and CLV — A practical guide to comparing customer acquisition cost and customer lifetime value using payback, margin, churn, and scenario assumptions.
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