Cost Per Acquisition Calculator Marketing
Calculate cost per acquisition with complete explanations. Learn CAC calculation, customer acquisition costs, and budget optimization. Free calculator.
Quick Answer
CAC = Total Marketing Cost ÷ Number of Customers. Good CAC: 1/3 of LTV (Lifetime Value). Essential for marketing budgeting, acquisition strategy, and business profitability analysis.
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Calculate With Full ToolWhat is Cost Per Acquisition?
Cost Per Acquisition (CAC) measures the total cost to acquire a new customer, including marketing expenses, sales costs, and related overhead. This metric helps evaluate acquisition efficiency, optimize marketing spend, and ensure sustainable business growth.
How CAC Calculation Works
CAC includes all costs associated with customer acquisition: advertising spend, marketing team salaries, sales commissions, software tools, and creative production. Dividing total costs by number of new customers provides the average acquisition cost.
CAC Benchmarks
Healthy CAC should be less than one-third of customer lifetime value (LTV). Industry benchmarks vary: B2B SaaS typically $100-$500, e-commerce $20-$100, while high-value B2B can be $1,000-$5,000. Lower CAC indicates more efficient acquisition.
CAC Formulas
CAC = Total Acquisition Cost ÷ New Customers
LTV:CAC Ratio = Customer Lifetime Value ÷ CAC
Payback Period = CAC ÷ Monthly Revenue Per Customer
Good LTV:CAC Ratio: 3:1 or higher
Excellent Ratio: 5:1 or higher
Poor Ratio: Less than 1:1 (unsustainable)
Payback Period: Under 12 months ideal
CAC Reduction: Focus on conversion optimization
Step-by-Step Example
Example: B2B SaaS company acquisition costs
Step 1: Marketing costs: $50,000 (ads, content, tools)
Step 2: Sales costs: $30,000 (salaries, commissions)
Step 3: Software costs: $10,000 (CRM, analytics)
Step 4: Total acquisition cost: $90,000
Step 5: New customers: 100
Step 6: CAC: $90,000 ÷ 100 = $900 per customer
Example: E-commerce store with multiple channels
Step 1: Google Ads: $15,000 → 200 customers ($75 CAC)
Step 2: Facebook Ads: $8,000 → 150 customers ($53 CAC)
Step 3: Email Marketing: $2,000 → 100 customers ($20 CAC)
Step 4: Total: $25,000 → 450 customers ($56 CAC)
Step 5: Best channel: Email marketing
Step 6: Optimization: Shift budget to email marketing
These examples show how CAC varies by business model and acquisition channel. Channel-specific CAC analysis helps optimize marketing spend and identify the most cost-effective acquisition strategies.
Who Should Use This Calculator?
Marketing Managers
Track acquisition costs and optimize campaigns
Business Owners
Evaluate customer acquisition profitability
Founders
Plan growth strategies and funding needs
Investors
Assess business model efficiency
Frequently Asked Questions
What's a good CAC for my business?
A good CAC should be less than one-third of customer lifetime value (LTV). For B2B SaaS, $100-$500 is typical. E-commerce: $20-$100. High-value B2B: $1,000-$5,000. The key is maintaining a healthy LTV:CAC ratio.
How do I reduce CAC?
Improve conversion rates, optimize ad targeting, enhance customer experience, leverage referrals, focus on retention, and use content marketing. Test different channels and allocate budget to highest-performing ones.
What costs should I include in CAC?
Include all customer acquisition costs: advertising spend, marketing salaries, sales commissions, creative production, software tools, agency fees, and overhead directly related to acquisition. Exclude costs for existing customers.