The method
How it is worked out
CAC = sales and marketing acquisition spend ÷ new customers acquired
- Spend
- Relevant acquisition costs
- Customers
- New customers in the same period
CAC Calculator
Calculate customer acquisition cost from sales and marketing spend and new customers acquired. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- AllocationShared overhead needs a consistent allocation policy.
- Period matchingSpend and customer counts should cover the same period.
- Organic customersBlended CAC can hide differences by channel.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the CAC Calculator
Customer acquisition cost, or CAC, estimates how much a business spends to win one new paying customer. This is useful when comparing marketing channels and checking whether a sales programme can pay for itself.
How it works and an example to tryShow less
How to use the result
Divide the sales and marketing acquisition spend for a period by the number of new customers won in that same period. Include relevant staff, agency, software and campaign costs consistently; excluding them can make CAC look artificially low. This tool does not itself estimate a customer's lifetime value or prove which campaign caused the sale.
Example to try
If a paid-social campaign costs 10,000 and brings in 80 new customers, enter those two figures to inspect cost per customer. Add associated creative or sales expenses to see a fuller CAC. Compare that acquisition cost with the gross profit you expect from a customer, not just the first sale.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Growth and marketing teams comparing channels, founders judging whether paid acquisition is sustainable, and agencies reporting honestly to clients.
Mistakes worth avoiding
- Excluding salaries, tools and agency fees so CAC looks lower than it is.
- Attributing every new customer to the last ad they clicked.
- Measuring CAC over a short window before slower channels have converted.
Questions
What does the CAC Calculator do?
Calculate customer acquisition cost from sales and marketing spend and new customers acquired.
How should I use the result?
Divide the sales and marketing acquisition spend for a period by the number of new customers won in that same period. Include relevant staff, agency, software and campaign costs consistently; excluding them can make CAC look artificially low. This tool does not itself estimate a customer's lifetime value or prove which campaign caused the sale.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a cac calculator?
Excluding salaries, tools and agency fees so CAC looks lower than it is. Attributing every new customer to the last ad they clicked. Measuring CAC over a short window before slower channels have converted.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.