Customer Acquisition Cost (CAC) Calculator

Total Marketing Cost ($):
Number of New Customers Acquired:

Customer Acquisition Cost (CAC): 0.00

What is Customer Acquisition Cost (CAC)?

Customer acquisition cost (CAC) is the total average cost of acquiring a new customer. It is an important marketing metric that represents the spend efficiency of your customer acquisition efforts.

How to Calculate CAC

The formula to calculate customer acquisition cost is:

CAC = Total marketing costs / Number of new customers acquired

For example, if you spent $100,000 last quarter on marketing activities and acquired 2,500 new customers in that period, the CAC would be:

CAC = $100,000 / 2,500 new customers = $40

This means you spent $40 on average to acquire each new customer in that quarter.

Marketing costs that factor into CAC include:

PPC/SEM ad spending
Social media advertising
Content marketing
Email marketing
Commission fees
Promotions and discounts

CAC Formula

CAC = Total marketing spend / New customers acquired

Tracking CAC Over Time

To identify trends, track your CAC over sequential periods of time such as months or quarters. For example:

Jan CAC = $30
Feb CAC = $40
March CAC = $35

This shows an increasing cost trend in Feb, then a reduction in March.

How to Improve Your Customer Acquisition Cost?

Automate repetitive marketing tasks to decrease overhead
Focus spend on high conversion channels
Leverage organic reach through SEO and content marketing
Analyze competitors’ CAC for comparison
Offer free trials or discounts to boost conversions
Use referral programs to reduce paid acquisition costs

Ideal CAC Range by Industry

Strive for a CAC lower than the following industry benchmarks:

SaaS – $200
Ecommerce – $100
Lead Gen – $50

Getting your CAC within the ideal range for your industry is key for maximizing marketing ROI. Use our CAC calculator tool to track your progress.