CAC Calculator
Customer acquisition cost is everything you spent to win customers divided by the number of customers you won. Unlike cost per lead, it includes the salaries and tools, not just the ad budget.
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Result
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Formula
CAC = (Marketing spend + Sales costs) ÷ New customers
Worked example
$5,000 of ads plus $2,000 of other costs for 35 customers is a CAC of $200. Against a $900 lifetime value that is a 4.5:1 ratio — healthy.
What's a good number?
Judge CAC only against lifetime value. The widely used benchmark is 3:1 — if a customer is worth $900, spending up to $300 to acquire them is sustainable. Below 1:1 you are paying for the privilege of having customers. Far above 3:1 is not automatically good either: it often means you are under-investing and leaving growth on the table.
Questions
- What's the difference between CAC and cost per lead?
- Cost per lead counts enquiries and usually only ad spend. CAC counts paying customers and includes the whole cost of winning them. CAC is always the larger and more honest number.
- Should salaries be in CAC?
- If you want a true figure, yes — the time spent selling is a real cost of acquisition. Many businesses track both: an ad-only figure to judge campaigns, and a fully loaded figure to judge the business.
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