Customer Acquisition Cost Calculator

Blended CAC from itemised sales and marketing costs, plus the months of gross margin needed to pay it back.

  • Runs in your browser
  • Free, no sign-up

Use costs and new customers from the same period.

Sales and marketing costs

Include everything spent to win new customers in the period.

Customers

For the payback period

Changes the symbol and number format only. No exchange rates are applied.

Results

Blended CAC
$200.00
$10,000.00 / 50 new customers per month
CAC payback
5 months
At $40.00 gross margin per customer per month
Paid ads
$5,000.00 (50%)
Marketing salaries and contractors
$3,000.00 (30%)
Sales team (salaries, commission)
$2,000.00 (20%)
Tools and software
$0.00 (0%)
Total
$10,000.00

Formulas

CAC = Total sales and marketing cost / New customers = $10,000.00 / 50 = $200.00 Monthly gross margin per customer = $100.00 x 40% = $40.00 Payback (months) = CAC / Monthly gross margin = 5

This calculator produces an estimate from the figures you enter. It is not financial, tax or legal advice.Full disclaimer

How to use the customer acquisition cost calculator

  1. Choose the period (month, quarter or year) and list every sales and marketing cost for it.
  2. Enter the number of new customers acquired in the same period.
  3. Enter the monthly revenue per customer and your gross margin to see the payback period.
  4. Review the CAC, the payback months and how the spend breaks down.

Worked example

$10,000 of sales and marketing costs, 50 new customers, $100 monthly revenue at 40% margin

Blended CAC is $10,000 ÷ 50 = $200. Each customer brings $40 of gross margin a month, so the acquisition cost is paid back in 5 months.

How it works

Blended CAC = total sales and marketing costs ÷ new customers acquired in the same period. Monthly gross margin per customer = monthly revenue per customer × gross margin. CAC payback (months) = CAC ÷ monthly gross margin per customer.

Assumptions

  • Costs and customers come from the same period; a lag between spend and sign-ups is not modelled.
  • Blended CAC includes customers from all channels, including organic and referrals.
  • Revenue per customer and margin are your own figures.

Frequently asked questions

What should be included in CAC?

Everything spent to win new customers: ad spend, marketing and sales salaries and commissions, agencies, tools, events and content. Excluding salaries makes CAC look lower than it really is.

What is the difference between blended and paid CAC?

Blended CAC divides all acquisition costs by all new customers. Paid CAC divides paid media costs by customers from paid channels only, and is usually higher.

What is a good CAC payback period?

Shorter is better for cash flow. What is acceptable depends on retention: a long payback only works if customers stay well beyond it.

Limitations

  • Does not split CAC by channel or cohort.
  • Payback ignores churn during the payback period.