Customer Acquisition Cost (CAC) Calculator
Calculate the total marketing and sales investment required to win one new paying customer.
Calculate Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) Formulas & Reverse Equations
Use these standard and algebraic reverse formulas in spreadsheets, agency decks, or media plans:
Solve for CAC
CAC = Total Marketing and Sales Expenses ÷ Total New CustomersSolve for Total Marketing and Sales Expenses
Total Marketing & Sales Expenses = Total New Customers × CACSolve for Total New Customers
Total New Customers = Total Marketing & Sales Expenses ÷ CACUnderstanding Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the definitive unit-economics metric for growth teams, founders, and CFOs. While platform CPA measures only direct ad spend per conversion, fully loaded CAC sums all marketing and sales expenses — media spend, agency retainers, creative production, software tools, and team salaries — divided by total new customers acquired.
When to Use Customer Acquisition Cost (CAC)
Use CAC for monthly board reporting, payback-period modelling, and comparing acquisition efficiency against Customer Lifetime Value (CLTV).
Industry Benchmarks & Planning Context
Pair CAC with your gross-margin payback period: best-in-class consumer brands recover CAC within 1–3 months, while SaaS businesses typically target a CAC payback period under 12 months.
Frequently Asked Questions About CAC
How is Customer Acquisition Cost (CAC) calculated?
Divide your total marketing and sales expenses over a specific period by the total number of new paying customers acquired in that same period: CAC = Total Marketing and Sales Expenses ÷ Total New Customers.
What is the difference between Paid CAC and Blended CAC?
Paid CAC divides paid media spend by customers attributed strictly to paid channels. Blended CAC (sometimes called MER-based CAC) divides total marketing spend by all new customers acquired across paid, organic, direct, and referral channels.
Should existing customer repeat orders be included in the denominator?
No. Only count first-time new customers in the CAC denominator. Including repeat purchases from existing customers artificially deflates your true acquisition cost.