Customer Acquisition Cost (CAC) Calculator
Enter what you spent on marketing and sales and how many new customers you won. The calculator shows your customer acquisition cost and how many orders it takes to earn it back.
How to use this Customer Acquisition Cost (CAC) Calculator
- Add up what you spent on marketing in the period, such as ads, content and tools.
- Add the sales and other costs that go into winning customers, such as salaries and commissions.
- Enter how many new customers you won in the same period.
- Add an average first order value and your gross margin to see the payback.
- Press Calculate. Repeat for each channel to compare them.
How to calculate customer acquisition cost
CAC is the total cost of winning customers divided by the number of customers won.
- CAC = (marketing spend + sales costs) / new customers
- Marketing-only cost = marketing spend / new customers
- Gross profit per order = order value x gross margin
- Payback in orders = CAC / gross profit per order
Worked example
A store spends $8,000 on marketing and $2,000 on sales costs in a month, and wins 100 new customers. The CAC is (8,000 + 2,000) / 100 = $100.00. Looking at marketing only, the cost is $80.00 per customer. The first order averages $150 at a 60% margin, so the gross profit is $90.00. It takes 100 / 90 = 1.11 orders to earn the CAC back, so most customers pay it back on their second purchase.
CAC on its own does not say whether growth is healthy. Compare it with the lifetime value of a customer, and watch the payback time. A business with a low CAC and a long payback may still run short of cash. Calculate CAC for each channel to see which one wins customers for the lowest cost, and review the figure every month because costs move as you scale.
Assumptions & limits
- CAC depends on which costs you include. Some teams count only ad spend, others add salaries and tools. Pick a rule and keep to it.
- The calculator counts new customers only, not returning ones.
- The period matters. A long sales cycle means spend and customers can fall in different months.
- Payback uses the first order only, so it ignores repeat purchases and refunds.
- Gross margin is an input, not a benchmark. Use your own figure.
Frequently asked questions
How do I calculate customer acquisition cost?
Add your marketing and sales costs for a period and divide by the number of new customers won in that period.
What costs go into CAC?
At least advertising and sales commissions. Many teams also include salaries, tools and agency fees. Use the same list each time.
What is a good CAC?
There is no single number. It should be well below the gross profit a customer brings over time, so compare it with lifetime value.
What is CAC payback?
It is how long, or how many orders, it takes for a customer to earn back the cost of winning them.
How do I lower my CAC?
Improve conversion, target better audiences, drop weak channels and grow referrals and repeat sales.
Should I calculate CAC by channel?
Yes. A blended figure can hide a channel that costs far more than another.
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Last updated: November 2026