Customer Acquisition Cost Calculator Formula
Understand the math behind the customer acquisition cost calculator. Each variable explained with a worked example.
Formulas Used
Customer Acquisition Cost (CAC)
cac = new_customers > 0 ? total_marketing_spend / new_customers : 0Customers Per $10,000 Spent
customers_per_10k = total_marketing_spend > 0 ? new_customers / total_marketing_spend * 10000 : 0Variables
| Variable | Description | Default |
|---|---|---|
total_marketing_spend | Total Marketing & Sales Spend(USD) | 50000 |
new_customers | New Customers Acquired | 200 |
How It Works
How to Calculate Customer Acquisition Cost
Formula
CAC = Total Marketing & Sales Spend / New Customers Acquired
CAC should be measured over a consistent time period (usually monthly or quarterly). Include all sales and marketing costs: advertising, salaries, tools, events, and content creation.
Worked Example
A company spends $50,000 on marketing and sales in a quarter and acquires 200 new customers.
- 01CAC = $50,000 / 200 = $250 per customer
- 02Customers per $10,000 spent = 200 / $50,000 x $10,000 = 40 customers
Frequently Asked Questions
What is a good CAC?
There is no universal benchmark. What matters is the LTV:CAC ratio. A ratio of 3:1 or higher is generally healthy -- meaning you earn at least $3 in lifetime value for every $1 spent acquiring a customer.
What costs should I include in CAC?
Include all customer acquisition costs: advertising spend, marketing team salaries, sales team salaries and commissions, marketing software, events, content creation, and any agency fees.
Learn More
Guide
Understanding SaaS Metrics
A comprehensive guide to SaaS metrics including MRR, ARR, churn rate, LTV, CAC, and the Rule of 40. Learn what to track and how to benchmark your SaaS business.
Ready to run the numbers?
Open Customer Acquisition Cost Calculator