CAC Calculator
Measure your Customer Acquisition Cost and optimize marketing spend.
Formula
CAC = (Marketing Spend + Sales Spend) ÷ New Customers AcquiredWhat is CAC?
Customer Acquisition Cost (CAC) denotes the total expenditure required to win a new paying customer. It aggregates all sales and marketing costs over a specific period. Once you have a handle on CAC, the next critical step is to evaluate your CAC Payback Period to understand your cash flow efficiency.
How to calculate CAC
Sum up every expense related to acquisition (ad spend, marketing tools, agency fees, sales team salaries, and commissions) and divide that by the number of new customers acquired during the same timeframe.
Example calculation
If you spent $15,000 on Google Ads, $5,000 on content marketing, and acquired 200 new customers in that month, your formula is: ($15,000 + $5,000) ÷ 200 = $100 CAC.
Why CAC matters for SaaS
A high CAC can rapidly burn through runway, while a low CAC allows a business to scale incredibly fast. Keeping your CAC significantly lower than your LTV ensures strong unit economics, ensuring your growth remains sustainable.
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