Customer Acquisition Cost (CAC) Calculator

Calculate the cost to acquire a new customer. Measure sales and marketing efficiency.

Customer Acquisition Cost
$cac
Cost per customer
Monthly CAC
$monthlyCac
Average per month
Monthly Customer Rate
monthlyCustomers
Customers per month
Monthly Marketing Spend
$monthlySpend
Average spend per month
💡 CAC Benchmarks
• B2B SaaS (SMB): $200-$500 CAC is typical
• B2B SaaS (Enterprise): $5,000-$15,000 CAC is common
• E-commerce: $10-$50 CAC is average
• Aim for CLTV:CAC ratio of at least 3:1
• Lower CAC indicates more efficient customer acquisition

How to Calculate Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the total cost to acquire one new customer. It's critical for understanding marketing efficiency and ensuring sustainable unit economics.

The CAC Formula

CAC = Total Sales & Marketing Costs / New Customers Acquired

Step-by-Step Calculation

Step 1: Sum All Sales & Marketing Costs

Include every expense related to customer acquisition:

  • Sales team salaries, commissions, and benefits
  • Marketing team salaries and contractors
  • Advertising spend (Google, Facebook, LinkedIn, etc.)
  • Marketing tools (CRM, email, analytics)
  • Content creation and agency fees
  • Events, trade shows, and sponsorships
  • Allocated overhead (office, management time)

Step 2: Count New Customers

Only count paying customers acquired in the period. Do not include:

  • Trial users who haven't converted
  • Leads or opportunities still in pipeline
  • Existing customer expansions or renewals

Step 3: Divide Costs by Customers

Example Calculation
  • Sales & Marketing Spend: $100,000
  • New Customers: 50
  • CAC: $100,000 / 50 = $2,000 per customer

CAC Benchmarks by Industry

IndustryTypical CACTarget CLTV:CAC
B2B SaaS (SMB)$200-$5003:1 to 5:1
B2B SaaS (Enterprise)$5,000-$15,0003:1 to 4:1
E-commerce$10-$503:1 to 5:1
Professional Services$500-$2,0004:1 to 6:1

Strategies to Reduce CAC

1. Improve Conversion Rates

  • Optimize landing pages and CTAs
  • Improve sales pitch and demo quality
  • Better lead qualification to focus on high-intent prospects
  • Reduce friction in signup and purchase process

2. Focus on High-ROI Channels

  • Shift budget from high-CAC to low-CAC channels
  • Double down on referrals and word-of-mouth
  • Invest in content marketing and SEO for organic traffic
  • Leverage partnerships and co-marketing

3. Increase Marketing Efficiency

  • Better audience targeting to reduce waste
  • A/B test ads, emails, and landing pages
  • Automate nurture sequences
  • Improve ad creative and messaging

4. Improve Sales Productivity

  • Implement sales enablement and training
  • Use sales automation tools
  • Focus reps on high-value activities
  • Shorten sales cycles through better qualification

Frequently Asked Questions

What is a good CAC for my business?

A good CAC depends on your CLTV. Aim for CLTV:CAC ratio of at least 3:1. If customer lifetime value is $3,000, your CAC should be under $1,000. B2B SaaS SMB typically has $200-$500 CAC, enterprise $5,000-$15,000, and e-commerce $10-$50.

What costs should I include in CAC?

Include all sales and marketing expenses: team salaries and commissions, advertising spend, marketing tools and software, content creation costs, agency fees, events and trade shows, sales tools (CRM, sales engagement), and allocated overhead. Be comprehensive for accurate CAC.

How is CAC different from CPA?

CAC (Customer Acquisition Cost) measures cost to acquire a paying customer. CPA (Cost Per Acquisition) can refer to any conversion action (lead, trial, demo). CAC is always about paying customers. CPA might measure cost per lead or cost per trial signup.

Should I calculate CAC by channel?

Yes, absolutely. Calculate separate CAC for paid ads, organic search, content marketing, outbound sales, partnerships, and referrals. This reveals which channels are most efficient and where to allocate budget. Paid ads might have $800 CAC while referrals have $200 CAC.

What is CAC payback period?

CAC payback is how long it takes to recover acquisition costs from customer revenue. Formula: CAC / (Monthly Revenue Per Customer × Gross Margin). Example: $1,200 CAC / ($100 MRR × 80% margin) = 15 months. Aim for under 12 months payback.

How can I reduce CAC?

Six strategies: 1) Improve conversion rates at each funnel stage, 2) Focus on high-converting channels, 3) Implement referral programs, 4) Optimize ad targeting and creative, 5) Improve sales team efficiency and win rates, 6) Invest in content marketing and SEO for lower-cost organic traffic.

Should CAC include customer success costs?

No. CAC should only include costs to acquire the customer (marketing and sales). Customer success, onboarding, and support costs are part of COGS (Cost of Goods Sold) or operating expenses, not acquisition costs. Keep CAC focused on getting the customer to sign.

How does CAC change at scale?

CAC typically increases as you scale because you exhaust the easiest channels first. Early customers might cost $200 each via referrals and inbound. As you scale to paid ads and outbound, CAC rises to $500-$1,000. Plan for CAC inflation when projecting growth.

Related Calculators

CLTV Calculator

Calculate customer lifetime value

CLTV to CAC Ratio

Measure unit economics health

Sales ROI Calculator

Calculate return on sales investment

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