Customer Acquisition Cost Calculator
Calculate the cost to acquire each new customer
Include ads, content, tools, marketing salaries
Include sales team salaries, commissions, tools
Optional: for LTV:CAC ratio analysis
Understanding Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including all marketing and sales expenses. It's a crucial metric for understanding the efficiency of your marketing efforts and the sustainability of your business model.
Formula: CAC = Total Marketing & Sales Costs / Number of New Customers Acquired
• Include all marketing costs (ads, content, tools, salaries)
• Include sales team costs and commissions
• Compare CAC to Customer Lifetime Value (LTV)
• Aim for LTV:CAC ratio of 3:1 or higher