Customer Acquisition Cost (CAC) Calculator

CAC Calculator

Currency

Number of New Customers Acquired

Marketing & Sales Spend Breakdown

Expense Category	Amount

CAC Summary

Total Marketing & Sales Spend

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New Customers Acquired

Customer Acquisition Cost (CAC)

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Step 1 - Enter your preferred currency symbol and the total number of new customers acquired during the period you want to analyze.

Step 2 - Add each marketing and sales expense as a line item — include ad spend, salaries, software, agency fees, and any other acquisition costs

Step 3 - The calculator totals your spend automatically and divides it by your customer count to calculate your CAC in real time.

Step 4 - Add or remove expense line items as needed and watch your CAC update instantly. Hit Reset to start a new calculation from scratch.

CAC Calculator FAQs

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost is the total amount spent on sales and marketing to acquire one new customer over a given period. It is calculated by dividing your total acquisition-related expenses by the number of new customers gained during that same timeframe.

What is the formula for calculating CAC?

The CAC formula is: Total Sales and Marketing Expenses ÷ Number of New Customers Acquired. For example, if you spent $15,000 on marketing and sales in a month and acquired 150 new customers, your CAC is $100 per customer.

What expenses should I include in my CAC calculation?

Include all costs directly tied to acquiring new customers — paid advertising, content marketing, SEO, social media, email marketing tools, sales team salaries and commissions, CRM software, agency fees, and any affiliate or referral program costs. The more complete your inputs, the more accurate your CAC.

What is a good CAC?

A good CAC depends on your industry and business model, but the most important benchmark is your Customer Lifetime Value (CLV) to CAC ratio. A ratio of 3:1 — where a customer generates three times what it cost to acquire them — is generally considered healthy. A ratio below 2:1 signals your acquisition costs may be too high.

What is the difference between CAC and CPA?

CPA (Cost Per Acquisition) typically refers to the cost of a specific action within a single campaign, such as a signup or download. CAC is broader — it includes all sales and marketing costs across all channels and measures the cost of acquiring a paying customer, not just a lead or action.

Should I include staff salaries in my CAC?

Yes. Salaries and benefits for your marketing and sales teams are a significant part of what it costs to acquire customers and must be included for an accurate CAC. If team members split time across acquisition and retention activities, include only the proportionate share attributed to acquisition.

How does CAC relate to Customer Lifetime Value (CLV)?

CAC and CLV are two sides of the same equation. CLV tells you how much revenue a customer generates over their lifetime with your business. The ratio between the two — CLV divided by CAC — is one of the most important indicators of whether your acquisition model is sustainable and profitable.

How often should I calculate my CAC?

Calculate CAC monthly or quarterly to track trends and catch changes in efficiency early. Recalculate whenever you make significant changes to your marketing channels, sales team structure, or overall acquisition strategy to understand the impact on your cost per customer.

Does customer retention affect my CAC?

Indirectly, yes. Strong retention reduces how many new customers you need to acquire to hit revenue targets, which means you can spread acquisition spend across fewer campaigns. Loyal customers who refer others also bring in new customers at a much lower cost than traditional paid acquisition.

Is the Yotpo CAC Calculator free to use?

Yes, this CAC Calculator is completely free to use. For tools that help reduce your CAC through loyalty programs, referrals, and reviews check out Yotpo's full platform here.