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.
CAC: how to calculate Customer Acquisition Cost (formula + examples)Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging)Unit economics hub: CAC, LTV, payback, and runway (a practical stack)LTV:CAC ratio: how to interpret the ratio (and avoid mistakes)
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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
- Pick a time window (month/quarter) and a segment (channel, plan, geo).
- Sum acquisition costs for that same window using a consistent definition (paid-only or fully-loaded).
- Count net new paying customers acquired in the window (not leads).
- 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).
Related calculators
SaaS Metrics
Fully-loaded CAC Calculator
Calculate fully-loaded CAC by including paid spend plus sales & marketing costs (salaries, tools, and other acquisition costs).
SaaS Metrics
LTV Calculator
Estimate customer Lifetime Value (LTV) using ARPA, gross margin, and churn rate.
SaaS Metrics
LTV Sensitivity Calculator
See how gross profit LTV changes as churn and gross margin vary (simple 3x3 sensitivity).
SaaS Metrics
LTV:CAC Calculator
Compute LTV:CAC ratio and CAC payback using ARPA, gross margin, churn, and CAC.
SaaS Metrics
CAC Payback Period Calculator
Estimate how many months it takes to recover CAC (months to recover CAC) using gross profit.
SaaS Metrics
CAC Payback Sensitivity Calculator
See how CAC payback months change as ARPA and gross margin vary (simple 3x3 sensitivity).
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.