How to use this calculator
- Enter or choose marketing spend.
- Enter or choose sales cost.
- Enter or choose other acquisition costs.
- Enter or choose new customers acquired.
- The customer acquisition cost updates as you type. Use Copy result or Share to keep it.
Method
CAC = (Marketing + Sales + Other acquisition costs) ÷ New customers; Marketing-only CAC = Marketing ÷ New customers
- Marketing, Sales, Other
- costs incurred in the period to win new customers
- New customers
- first-time paying customers acquired in the same period (the denominator)
Worked example
- Total cost = 30,000 + 20,000 = $50,000.
- CAC = 50,000 ÷ 250 = $200.
- Marketing-only CAC = 30,000 ÷ 250 = $120.
Winning 250 customers for $50,000 of marketing and sales cost is a CAC of $200 each.
What the result means
Compare CAC with the gross profit a customer brings over their lifetime (see the LTV:CAC calculator). Always state whether your CAC includes sales costs: a marketing-only figure can look far cheaper than the fully loaded one.
Assumptions and limits
- Costs and new customers are measured over the same period.
- Existing customers who buy again are not counted as new customers.
- Long sales cycles mean some customers won this period were paid for in earlier periods; use a lagged period if that matters.
Questions
What is the difference between CAC and CPA?
CAC divides by new paying customers. CPA divides by any chosen conversion, such as a sign-up or a lead, so CPA is usually lower.
What is blended CAC?
CAC calculated over all new customers, including those from free channels such as organic search and referrals. Paid CAC divides paid spend by customers from paid channels only.