RaiseFluent

CAC Calculator

Work out what it really costs you to win a new customer.

Customer acquisition cost

$1,000

CAC = sales and marketing spend ÷ new customers acquired, over the same period. Use the same time window for both numbers, and include salaries and tools, not just ad spend. Investors compare CAC to how much a customer is worth over their lifetime: see the LTV calculator.

Educational estimate, not legal or financial advice.

How it works

Work out your CAC in 3 steps

1

Enter your total sales and marketing spend for a period, including salaries, tools and ads.

2

Enter the number of new customers you won in the same period.

3

See your CAC, then compare it to customer lifetime value with the LTV calculator.

Worked example

$30K spend, 30 new customers

Inputs

Sales and marketing spend
$30,000
New customers
30

Result

CAC
$1,000

CAC only matters next to LTV. Check your ratio in the LTV calculator.

How we got there

You spend $30,000 on sales and marketing in a month and win 30 new customers. Your CAC is $1,000. If each customer brings $3,000 in lifetime profit, your LTV to CAC ratio is 3x.

Reading your result

Is your CAC healthy?

Good sign

LTV at least 3x CAC, earned back within about 12 months.

Red flag

CAC rising every month while conversion falls.

CAC only means something next to what a customer is worth. A $1,000 CAC is great if customers are worth $5,000 and a problem if they are worth $800.

Track CAC by channel as well as overall. A healthy blended number can hide one channel that is losing money.

FAQ

CAC questions founders ask

The average amount you spend on sales and marketing to win one new customer.

Ad spend, sales and marketing salaries, commissions, tools, agencies and events.

It depends on customer value. Many investors look for LTV at least 3x CAC, and for CAC to be earned back within about 12 months.

Blended CAC counts all new customers, including referrals and organic ones. Paid CAC counts only customers from paid channels.

Improve conversion rates, invest in referrals and content, and focus spend on your best channel.