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CAC Calculator

Calculate Customer Acquisition Cost (CAC) from total acquisition spend and new customers.

Customer Acquisition Cost (CAC) is the average cost to acquire one new paying customer. It is a core SaaS unit-economics metric used to evaluate channel efficiency and plan budgets.

The key is consistency: define what costs you include and what counts as a "new customer", then use the same definition across time and segments.

Prefer an explanation- Read the guide.
Need definitions- Browse the glossary.
 
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Set 0 to disable target CAC guidance.
Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$500.00
Sales + marketing spend
$20,000
New customers acquired
40
ARPA per month (optional)
$200
Gross margin (optional)
80%
Target payback (months, optional)
12

How to calculate

  1. Pick a time window (month/quarter) and a segment (channel, plan, geo).
  2. Sum acquisition costs for that same window using a consistent definition (paid-only or fully-loaded).
  3. Count net new paying customers acquired in the window (not leads).
  4. Divide acquisition spend by new customers to get CAC.

Formula

CAC = Sales & Marketing Spend / New Customers
  • Spend and new customers are measured over the same time window.
  • New customers means net new paying customers (not leads or trials).
  • Use a consistent cost definition (paid-only vs fully-loaded).
  • Exclude retention costs unless you explicitly allocate them.

FAQ

Should I include salaries in CAC-
Many teams include the portion of sales/marketing salaries and tools attributable to acquisition; keep your definition consistent over time.
What's the difference between paid CAC and blended CAC-
Paid CAC uses only paid acquisition spend (ads). Blended CAC includes all acquisition costs (paid + sales + marketing + tools) divided by new customers.
Is CAC a good metric on its own-
Not by itself. Pair CAC with payback period and retention/LTV. A low CAC can still be bad if churn is high, and a high CAC can be fine if payback is fast and retention is strong.
What if my sales cycle is long-
Match costs and customers using a consistent rule (e.g., cohort-based CAC, or lag spend by your average sales cycle) so CAC isn't artificially high or low in a given month.

Common mistakes

  • Using leads or trials as the denominator instead of paying customers.
  • Mixing paid-only CAC with fully-loaded CAC when comparing channels.
  • Comparing CAC across periods without accounting for channel mix changes.

How to interpret

How to calculate CAC well
  • Use 'new customers acquired' for the same period as spend.
  • Decide whether to include salaries/tools and stick to it consistently.
  • Segment CAC by channel and customer type (SMB vs enterprise).
What to pair with CAC
  • LTV and payback period determine if CAC is sustainable.
  • Retention/churn explains whether CAC will rise over time.
Common pitfalls
  • Mixing paid-only CAC with an LTV model that assumes fully-loaded costs.
  • Counting trials/signups as customers (inflates performance).
  • Ignoring channel mix changes (your blended CAC will drift).

Quick checks

  • Keep time units consistent (monthly vs annual) across inputs and outputs.
  • Segment by cohort/channel/plan before trusting a blended average.
  • Use the related guide to avoid common definition and denominator mismatches.