Customer Acquisition Cost (CAC) Calculator
Calculate how much it costs to acquire a single customer based on your marketing spend and total new customers.
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Applications
Used by startups to evaluate marketing campaign efficiency, by agencies to set client budgets, and by product teams to understand unit economics and profitability.
The Formula
CAC = Total Marketing Spend / Number of New Customers Acquired. A lower CAC indicates more efficient customer acquisition, although the ideal CAC depends on your LTV (Lifetime Value).
Fun Fact: The concept of CAC became central to startup culture during the SaaS boom of the 2010s, where investors used LTV:CAC ratios to determine whether a business was sustainable.
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