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Customer Acquisition Cost Calculator

Enter your marketing and sales expenses for a period and the number of new customers you won in the same period. You get your customer acquisition cost (CAC) instantly.

Enter your numbers

Advertising, content and design, email and marketing tools, and agency or freelancer fees for the period.

Sales salaries or commissions, sales tools and the cost of proposals and demos. Enter 0 if you have none.

Whole number of people who bought from you for the first time during the period.

Your result

Enter your marketing expenses, sales expenses and new customers to see your CAC.

How the CAC calculation works

Customer acquisition cost (CAC) is what it costs, on average, to win one new customer. You add up what you spent on marketing and sales in a period and divide by the number of new customers you won in that same period.

CAC = (Marketing expenses + Sales expenses) / New customers acquiredUse costs and customers from the same time period, for example one month.

The time period matters. If you choose "month", use that month's costs and that month's new customers. Mixing a quarter of spending with a month of customers will give a number that means nothing. Count only new customers, meaning people who bought from you for the first time in the period, not repeat buyers.

Worked examples

Illustrative numbers only

These figures are made up to show the arithmetic. They are not a benchmark.

  1. Marketing expenses: 4,000. Sales expenses: 2,000. New customers: 30.
  2. Total spend = 4,000 + 2,000 = 6,000.
  3. CAC = 6,000 / 30 = 200 per new customer.
Illustrative numbers only: a slower month
  1. Marketing expenses: 1,200. Sales expenses: 0. New customers: 4.
  2. CAC = 1,200 / 4 = 300.
  3. The spend was lower, but so were the results, so each customer cost more. This is why CAC is worth checking every period.

What counts as an acquisition cost

Marketing: advertising spend, content creation, design, email and social tools, events, and agency or freelancer fees. Sales: salaries or commissions of people who sell, your CRM, tools used for proposals and demos, and travel to meet prospects. Be consistent from one period to the next, because a trend is only meaningful when you measure it the same way each time. If you spend much of your own time on selling, you can include a value for it, as long as you do it every time.

Using CAC: compare it with what a customer brings

A CAC figure on its own does not say whether you are doing well. It matters in relation to what a customer is worth to you. Compare it with the gross profit a customer brings, and our Customer Lifetime Value Calculator helps with that side of the comparison. A simple way to put the two together is the payback period:

Payback period = CAC / Gross profit per customer per monthHow many months of gross profit from one customer it takes to earn back what you spent to win them.

For example, a CAC of 200 and a gross profit of 25 per customer per month means about 8 months to earn the money back (200 / 25). Whether 8 months is acceptable depends on how long customers stay and how much cash you have, so use your own numbers rather than a general rule. Our guide to unit economics walks through this thinking.

What this calculator cannot tell you

CAC is an average based on the numbers you enter. It is an estimate, not a guarantee of what the next customer will cost.

Ways to lower your CAC

Improve how well your marketing converts by testing headlines and buttons (A/B testing) and removing friction at the last step (simplifying checkout). Use your happy customers to bring in more: a referral program can win customers more cheaply than advertising. Keeping customers longer does not lower CAC, but it raises the value of every customer you win (see customer retention).

Frequently asked questions

What is a good CAC?

There is no number that is good for every business. It depends on what a customer is worth to you. A CAC is healthy when the gross profit a customer brings clearly exceeds it and you earn the money back quickly enough for your cash flow.

Should I include salaries in CAC?

Include the salaries and commissions of people whose job is to win new customers. Leave out staff who only serve existing customers. Whatever you choose, apply it the same way each period.

What is the difference between CAC and cost per lead?

Cost per lead divides spend by the number of enquiries or sign-ups. CAC divides spend by the number of people who became paying customers, so it is always at least as high.

How often should I calculate CAC?

Monthly is a good rhythm for many small businesses, with a longer view each quarter to smooth out timing. Recalculate after any big change in spend.