Customer Acquisition Cost (CAC) Calculator

CAC is a metric that calculates how much it costs your business to acquire one new customer. It's calculated by dividing your total marketing and sales expenses by the number of new customers acquired in that period.

A good CAC varies by industry, but generally you want your Customer Lifetime Value (LTV) to be at least 3 times higher than your CAC. For B2B services, CAC typically ranges from $100-$500 depending on the service type.

Improve CAC by optimizing your marketing channels, improving conversion rates, referral programs, better targeting, content marketing, and focusing on higher-value customers who have better retention rates.

Include all costs related to acquiring customers: advertising spend, marketing team salaries, marketing tools and software, content creation costs, sales team costs, and any other customer acquisition expenses.

Common mistakes include not including all acquisition costs (like salaries), using the wrong time period, not accounting for the full customer acquisition funnel, and comparing CAC across different customer segments.

Calculate CAC monthly or quarterly to track trends and optimize your marketing spend. Regular monitoring helps you identify which channels are most cost-effective and adjust your strategy accordingly.