How to calculate CAC
Total acquisition spend divided by new customers.
Add marketing spend
Include ads, content, tools and agency costs for the period.
Add sales spend
Include sales payroll, commissions and enablement tools.
Count new customers
Use customers acquired in the same period, not total customers.
What does this tool do?
Customer acquisition cost blends marketing and sales spending into a single cost per new customer. Comparing it with customer profit shows how long the business takes to earn back what it spent to acquire a buyer.
The Formula
CAC = (Marketing spend + Sales spend) ÷ New customers acquiredFrequently Asked Questions
Should CAC include sales salaries?
Yes, if those roles exist to win customers. Include marketing salaries, tools, agency fees and commissions for a fully loaded figure rather than only ad spend.
What is a good CAC payback period?
It depends on cash and churn. Many subscription businesses aim to recover CAC within 12 months, while businesses with long contracts may accept longer periods.