Customer Acquisition Cost (CAC) Calculator
Calculate how much your business spends on average to acquire each new customer.
Enter Your Acquisition Costs
Include the costs associated with acquiring new customers during the same period.
Your Results Will Appear Here
Enter your acquisition costs and number of new customers to calculate CAC.
How to Calculate Customer Acquisition Cost
Customer Acquisition Cost (CAC) measures the average amount a business spends to acquire one new customer. It helps businesses evaluate marketing and sales efficiency.
Customer Acquisition Cost Formula
Total Acquisition Costs = Marketing + Sales + Agency + Tools + Other Costs
CAC = Total Acquisition Costs ÷ New Customers Acquired
Calculation Example
If your business spends $5,000 to acquire 100 new customers:
- Total acquisition costs: $5,000.
- New customers acquired: 100.
- CAC: $5,000 ÷ 100 = $50 per customer.
Frequently Asked Questions
What is Customer Acquisition Cost (CAC)?
CAC is the average cost of acquiring one new customer, based on the acquisition expenses and new customers included in the calculation.
Which costs should be included in CAC?
Include relevant marketing, advertising, sales team, agency, contractor, software and other customer acquisition expenses.
What time period should I use?
Use costs and newly acquired customers from the same period, such as a month, quarter or year, to keep the calculation consistent.
Does a lower CAC always mean better performance?
Not necessarily. Compare CAC with customer value, retention and profitability to understand whether acquisition spending is sustainable.