CAC Calculator (Customer Acquisition Cost)
Divide the period's spend by the customers it won. 24,000,000 for 120 customers is a blended CAC of 200,000. But if only 70% of those 120 came from paid channels, advertising actually delivered 84 people, and the paid-only CAC is 24,000,000 ÷ 84 = 285,714. Doubling the ad budget does not double referrals and organic search, so the cost of the next hundred customers sits closer to 285,714 than to 200,000.
Your numbers
Customer acquisition cost
200,000
Paid-only CAC
285,714
Customers won by paid
84
Formula
Customer acquisition cost = Sales and marketing spend ÷ New customers, Paid-only CAC = Sales and marketing spend ÷ (New customers × Share won by paid ÷ 100)
What goes in the numerator varies by company. A CAC counting media spend alone and one counting sales salaries, tools and agency fees differ by two or three times, so ask before comparing with anyone else's figure. People also sign up a month after seeing the ad, so dividing this month's spend by this month's customers reports CAC high while growing and low while shrinking.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Sales and marketing spendEverything spent on sales and marketing in the period. | 24,000,000 | 0 and up |
| New customersCustomers won in the period, paid and organic mixed together. | 120 | 0 and up |
| Share won by paid (%)The share of new customers that came from paid channels; the rest arrived free. | 70 | 0 ~ 100 |
Step by step
Quick reference table
Results when only Sales and marketing spend changes and everything else stays put.
| Sales and marketing spend | Customer acquisition cost | Paid-only CAC | Customers won by paid |
|---|---|---|---|
| 12,000,000 | 100,000 | 142,857 | 84 |
| 18,000,000 | 150,000 | 214,286 | 84 |
| 24,000,000 | 200,000 | 285,714 | 84 |
| 36,000,000 | 300,000 | 428,571 | 84 |
| 48,000,000 | 400,000 | 571,429 | 84 |
What each result means
| Result | At default values |
|---|---|
| Customer acquisition costWhat it cost to win one customer; what goes in the numerator varies by company. | 200,000 |
| Paid-only CACSpend divided only by the customers paid actually delivered — closer to the next hundred's cost. | 285,714 |
| Customers won by paidCustomers from paid channels — the total less the organic ones. | 84 |
Common mistakes
What goes in the numerator varies by company. A CAC counting media spend alone and one counting sales salaries, tools and agency fees differ by two or three times, so ask before comparing with anyone else's figure. People also sign up a month after seeing the ad, so dividing this month's spend by this month's customers reports CAC high while growing and low while shrinking.
Glossary
- Sales and marketing spend
- Everything spent on sales and marketing in the period.
- New customers
- Customers won in the period, paid and organic mixed together.
- Share won by paid
- The share of new customers that came from paid channels; the rest arrived free.
- Customer acquisition cost
- What it cost to win one customer; what goes in the numerator varies by company.
- Paid-only CAC
- Spend divided only by the customers paid actually delivered — closer to the next hundred's cost.
- Customers won by paid
- Customers from paid channels — the total less the organic ones.
Frequently asked questions
Q. How is CAC Calculator (Customer Acquisition Cost) calculated?
Customer acquisition cost = Sales and marketing spend ÷ New customers, Paid-only CAC = Sales and marketing spend ÷ (New customers × Share won by paid ÷ 100) — Divide the period's spend by the customers it won. 24,000,000 for 120 customers is a blended CAC of 200,000. But if only 70% of those 120 came from paid channels, advertising actually delivered 84 people, and the paid-only CAC is 24,000,000 ÷ 84 = 285,714. Doubling the ad budget does not double referrals and organic search, so the cost of the next hundred customers sits closer to 285,714 than to 200,000.
Q. Can you walk through an example?
With Sales and marketing spend 24,000,000, New customers 120, Share won by paid 70%, the answer is Customer acquisition cost 200,000.
Q. What do I need to enter?
Enter Sales and marketing spend, New customers, Share won by paid. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Sales and marketing spend moves the answer to Sales and marketing spend 12,000,000 → Customer acquisition cost 100,000 and Sales and marketing spend 48,000,000 → Customer acquisition cost 400,000. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
What goes in the numerator varies by company. A CAC counting media spend alone and one counting sales salaries, tools and agency fees differ by two or three times, so ask before comparing with anyone else's figure. People also sign up a month after seeing the ad, so dividing this month's spend by this month's customers reports CAC high while growing and low while shrinking.
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