Free tool
Free Customer Acquisition Cost Calculator
Customer acquisition cost (CAC) calculator
Calculate customer acquisition cost, cost per customer acquisition, and LTV:CAC ratio. Itemize sales & marketing expenses, model subscription or transactional LTV, and find your max affordable CAC from budget and growth targets.
All S&M costs for the period
Customers gained in the same period
Results
CAC = Total sales & marketing spend ÷ New customers acquired. LTV:CAC ratio of 3:1 or higher is a common SaaS benchmark. This customer acquisition cost (CAC) calculator runs free in your browser.
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Customer acquisition cost calculator for startups & SaaS
This customer acquisition cost calculator and cost per customer acquisition calculator helps founders measure unit economics. Enter total sales & marketing spend and new customers to get CAC instantly. A cost of customer acquisition calculator built for startup budgeting, investor updates, and channel optimization, one of the best customer acquisition cost calculator tools for 2026 planning.
Customer acquisition cost (CAC) calculator formula
The standard formula used by this customer acquisition cost (CAC) calculator:
- CAC = Total S&M spend ÷ New customers acquired
- LTV = Revenue per customer × Lifespan × Gross margin %
- LTV : CAC = LTV ÷ CAC (target 3:1+ for SaaS)
- Payback = CAC ÷ Monthly gross profit per customer
What to include in CAC expense breakdown
A fully-loaded CAC includes advertising, marketing salaries, sales commissions, martech stack costs, content production, and events. Expense breakdown mode lets you itemize each line so nothing is missed when reporting to investors or comparing quarterly CAC trends.
CAC benchmarks by industry
- B2B SaaS: $200–$1,000+ CAC, 3:1 LTV:CAC target
- E-commerce: $10–$50 CAC, focus on repeat purchase LTV
- Mobile apps: $1–$5 per install, watch retention closely
- Marketplaces: varies by supply/demand side acquisition
Absolute CAC matters less than LTV:CAC ratio and payback period relative to your runway and growth goals.
Frequently asked questions
How do I calculate customer acquisition cost (CAC)?
Customer acquisition cost (CAC) = Total sales & marketing spend ÷ Number of new customers acquired in the same period. Example: $50,000 S&M spend and 100 new customers = $500 CAC. Use the same time window for spend and customer count (monthly or quarterly). This customer acquisition cost (CAC) calculator applies the formula instantly.
What expenses should be included in CAC calculations?
Include all sales and marketing costs: advertising and paid media, marketing team salaries, sales team salaries and commissions, marketing tools and software (CRM, email, analytics), content and creative production, events and sponsorships, and agency fees. Do not include product development or general overhead unless directly tied to acquisition. Use Expense breakdown mode to itemize each category.
How can I lower my customer acquisition cost?
Improve conversion rates on landing pages and funnels, focus on higher-intent channels, increase organic and referral traffic, optimize ad targeting and creative, shorten sales cycles, and improve onboarding retention so paid customers stick. Track CAC by channel to cut underperforming spend. A lower CAC with stable LTV improves your LTV:CAC ratio and payback period.
What is a good CAC benchmark for my industry?
Benchmarks vary: B2B SaaS often targets $200–$1,000+ CAC with 3:1 LTV:CAC; e-commerce may see $10–$50; mobile apps $1–$5 per install. More important than absolute CAC is the LTV:CAC ratio, 3:1 is a common healthy target for SaaS, below 1:1 is unsustainable. Compare your CAC payback period (months to recover acquisition cost) against your cash runway.
How does CAC relate to customer lifetime value?
LTV:CAC ratio measures whether you earn more from a customer than you spend to acquire them. LTV = average revenue per customer × lifespan × gross margin. If CAC is $500 and LTV is $1,500, your ratio is 3:1, generally healthy for SaaS. Use CAC vs LTV mode to calculate both, your ratio, and estimated payback months.
What is the difference between CAC and cost per acquisition (CPA)?
CAC typically measures the cost to acquire a paying customer and includes full S&M overhead. CPA often refers to cost per conversion action (lead, signup, or purchase) in advertising platforms. This cost of customer acquisition calculator focuses on fully-loaded CAC for business planning.
Is this customer acquisition cost calculator free?
Yes. This free customer acquisition cost calculator runs in your browser with no account. Calculate CAC, cost per customer acquisition, expense breakdowns, LTV:CAC ratios, and target CAC for startups, SaaS, and e-commerce.
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