Cost per Customer Acquisition (CAC) Calculator

Calculate and analyze your customer acquisition costs to optimize your sales and marketing spend.

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including all marketing and sales expenses.

How to Use This Calculator

1. Enter your total marketing spend (advertising, content, events, etc.)
2. Enter your total sales spend (salaries, commissions, tools, etc.)
3. Input the number of new customers acquired
4. Specify the time period in months
5. Add your average customer lifetime value (LTV)

The calculator will show:

• Your CAC and how it compares to industry benchmarks
• Months required to recover CAC
• LTV to CAC ratio
• Visual analysis of CAC recovery timeline

Tips for Optimizing CAC

1. Improve Marketing Efficiency

   • Focus on channels with the best ROI
   • Optimize conversion rates
   • Test and iterate on campaigns

2. Enhance Sales Process

   • Reduce sales cycle length
   • Improve lead qualification
   • Automate repetitive tasks

3. Balance Growth with Costs

   • Monitor CAC trends over time
   • Compare CAC across different channels
   • Adjust strategy based on LTV:CAC ratio

Common Mistakes to Avoid

1. Incomplete Cost Attribution

   • Remember to include all marketing and sales costs
   • Account for overhead and tools
   • Include team salaries and commissions

2. Ignoring Time Period

   • Consider seasonality
   • Account for sales cycle length
   • Use consistent measurement periods

3. Mismatched Metrics

   • Align customer acquisition with spend period
   • Consider delayed conversions
   • Account for multi-touch attribution

Related Metrics

• Customer Lifetime Value (LTV)
• Churn Rate
• Customer Acquisition Payback Period
• Marketing ROI
• Sales Efficiency

Formula Explanation

CAC = (Marketing Spend + Sales Spend) / Number of New Customers

Months to Recover = CAC / (LTV / 12)

LTV:CAC Ratio = LTV / CAC