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