Customer Acquisition Cost Calculator
Customer acquisition cost (CAC) measures how much you spend to win each new customer. Enter your marketing and sales costs to see marketing CAC, fully loaded CAC, and your LTV-to-CAC ratio when lifetime value is available.
Last reviewed: 2026-07-29
Results
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What is CAC?
Customer Acquisition Cost (CAC) measures how much a business spends to win each new customer. It divides total acquisition-related costs by the number of new customers acquired in a given period. CAC is a fundamental metric for evaluating sales and marketing efficiency.
There are two common variants: marketing CAC (marketing costs only) and fully loaded CAC (marketing plus sales costs). The fully loaded figure is more conservative and more realistic for businesses with a dedicated sales team.
CAC formula
- Marketing CAC = Total Marketing Costs ÷ New Customers
- Fully Loaded CAC = (Marketing Costs + Sales Costs) ÷ New Customers
- LTV-to-CAC = Customer Lifetime Value ÷ Fully Loaded CAC
- Customers per $1,000 = $1,000 ÷ Fully Loaded CAC
Worked example
A company spends $5,000 on ads, $3,000 on marketing salaries, $500 on software, and $1,500 on sales costs. They acquire 100 new customers and have an LTV of $500.
- Marketing Costs = $5,000 + $3,000 + $500 = $8,500
- Total Costs = $8,500 + $1,500 = $10,000
- Marketing CAC = $8,500 ÷ 100 = $85
- Fully Loaded CAC = $10,000 ÷ 100 = $100
- LTV-to-CAC = $500 ÷ $100 = 5.0x
Compare with the LTV calculator to understand the full picture.
How to use this calculator
Enter all marketing costs for the period. Optionally add sales costs for the fully loaded figure. Enter the number of new customers acquired, and optionally your LTV to see the LTV-to-CAC ratio. All costs should be for the same period as the customer count.
Interpreting the results
The LTV-to-CAC ratio compares how much a customer is worth over their lifetime against how much it costs to acquire them. A ratio above 1 means customers are worth more than they cost to acquire; below 1 means you are losing money on each customer. The right target depends on your business model — there is no universally correct number.
The customers-per-$1,000 metric gives an intuitive sense of scale: at $100 CAC, $1,000 buys 10 customers.
Common mistakes
- Using marketing CAC only. If you have a sales team, fully loaded CAC is the honest number.
- Mismatching periods. Costs and customer counts must cover the same time period.
- Forgetting software and tools. CRM, analytics and ad platforms are acquisition costs.
- Targeting a universal ratio. The right LTV-to-CAC depends on margins, churn and growth stage. See the LTV calculator.
Frequently asked questions
Related calculators
- Customer Lifetime Value Calculator
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- Conversion Rate Calculator
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- ROAS Calculator
Measure revenue generated for each unit of advertising spend.
Disclaimer
Results from this calculator are estimates for general information only and are not financial, accounting, tax, investment or legal advice. Verify important figures with a qualified professional. Read our full disclaimer.