How to Use This Customer Acquisition Cost Calculator
Enter your sales spend, marketing spend, and new customers acquired. CAC calculates instantly. Optionally add customer LTV to see your LTV:CAC ratio.
Example: Sales team cost = $10,000. Marketing budget = $20,000. New customers = 300.
CAC = ($10,000 + $20,000) ÷ 300 = $100
The CAC Formula Explained
Include all costs directly related to customer acquisition: ad spend, sales salaries and commissions, agency fees, tools, events. Exclude costs of serving existing customers.
LTV:CAC Ratio = Customer Lifetime Value ÷ CAC. A ratio of 3:1 or higher is the industry benchmark for sustainable growth.
What Is a Good CAC? Benchmarks by Industry
| Industry | Typical CAC Range |
|---|---|
| SaaS (SMB) | $100–$500 |
| SaaS (Enterprise) | $5,000–$50,000+ |
| E-commerce | $10–$100 |
| Financial Services | $300–$1,200 |
| Healthcare | $250–$800 |
| Real Estate | $600–$2,000 |
Sources: ProfitWell SaaS benchmarks; Shopify e-commerce data; industry-reported averages (2024). Updated August 2026. These are illustrative ranges — actual CAC depends on product price, sales motion, and market maturity.
Common CAC Mistakes
- Counting returning customers. CAC measures the cost of acquiring new customers only. Including retention revenue inflates the denominator and understates your true acquisition cost.
- Excluding sales costs. Marketing-only CAC ignores sales salaries, commissions, and tools. Full CAC must include both sales and marketing spend.
- Using a single month of data. CAC has a lag — sales cycles, delayed conversions, and seasonal marketing spend all distort single-month figures. Use trailing 3–12 months.
- Ignoring LTV. A $500 CAC is terrible if LTV is $600, and excellent if LTV is $3,000. Never evaluate CAC in isolation.