CAC Calculator (Customer Acquisition Cost)

How to calculate customer acquisition cost

Customer acquisition cost (CAC) is the average sales and marketing cost of acquiring one new paying customer. Use one consistent period for both costs and customers. Spend $15,000 on campaigns, people and tools and win 100 new customers in that period: your fully loaded CAC is $150.

Count new customers only. Renewals, repeat purchases and expansion from existing accounts belong elsewhere. Include acquisition work that happened before the customer signed: paid media, campaign agencies and contractors, sales and marketing salaries, software, content, events and other acquisition expenses. Attribution timing can be imperfect when a long sales cycle crosses reporting periods, so use consistent cohorts when comparing months.

Paid-channel CAC versus fully loaded CAC

The calculator keeps paid campaign costs separate from the rest of your acquisition spend. The paid-channel figure helps compare campaigns. Fully loaded CAC includes the whole acquisition operation and is the number to use when comparing with lifetime value.

In the example above, $5,000 of paid campaigns across 100 new customers yields $50 paid-channel CAC. Add $7,000 of salaries, $1,000 of tools and $2,000 of other costs and fully loaded CAC becomes $150. A campaign can look efficient on its own while the whole acquisition operation remains expensive.

LTV:CAC shows whether acquisition can pay off

Divide customer lifetime value (LTV, also called CLV) by fully loaded CAC. Use a lifetime value based on gross profit after the cost of delivering your product, so the comparison does not overstate the money available to recover acquisition spend. At $600 gross-profit LTV and $150 CAC, the ratio is 4:1.

Stripe describes 3:1 as a common SaaS planning target. The 2026 Benchmarkit report, based on 2025 results from B2B SaaS and AI-native companies, reports a 4.1:1 median CLTV:CAC among 146 respondents to that metric. These are different kinds of numbers: one is a rule of thumb, the other is a sample median. Neither makes a universal dollar CAC target.

The colored 1:1, 3:1 and 5:1 bands in the tool are a quick planning guide. Below 1:1, lifetime gross profit is less than acquisition cost. Around 3:1 meets the commonly cited target. Above 5:1 can indicate room to invest in growth, but may also reflect a strong product or a conservative LTV estimate. Use your segment, payback and cash needs before changing spend.

Reverse mode answers the budgeting question directly: maximum CAC = gross-profit LTV ÷ target ratio. With $600 LTV and a 3:1 target, you can spend up to $200 per new customer on a fully loaded basis. At 100 new customers, that is a $20,000 acquisition budget. It is a ceiling implied by the ratio, not proof that spending the full amount is wise.

CAC payback period

Payback asks how long each new customer's monthly gross profit takes to recover CAC. Divide CAC by monthly average revenue per customer (ARPU) multiplied by gross margin. At $150 CAC, $20 monthly ARPU and 80% margin, monthly gross profit is $16 and payback is 9.4 months.

Stripe notes that many SaaS companies aim for payback under 12 months. Benchmarkit's 2026 report found a 16-month median among 198 respondents, with an 11-month median for companies below $5,000 annual contract value and 22 months for the $50,000–$100,000 contract band. Those segment differences are why one threshold cannot judge every sales motion. Use the optional payback inputs above to check your own cash-recovery period before increasing acquisition spend.

Keep payment fees in your unit economics

Payment-processing fees reduce the margin you retain from a customer. Model them in gross profit or LTV, rather than adding every transaction fee to acquisition spend. The Stripe Fee Calculator and PayPal Fee Calculator estimate the net proceeds from a sale; use those results when checking margin and payback.

Looking for a different CAC?

This calculator covers customer acquisition cost for marketing and SaaS. A coronary artery calcium (CAC) score or percentile is a medical imaging measure and uses a different calculator.

Frequently Asked Questions

What is a CAC calculator?

A customer acquisition cost (CAC) calculator divides the sales and marketing cost of winning customers by the number of new customers acquired in the same period. This tool also compares paid-channel CAC, gross-profit LTV:CAC and CAC payback.

How do I calculate customer acquisition cost?

Add the acquisition-related spend for one period, including paid campaigns, agencies, sales and marketing salaries, software, content and events. Divide that total by the new customers won in that period. $15,000 divided by 100 new customers is $150 CAC.

What is a typical customer acquisition cost?

There is no useful universal dollar CAC. Price, customer segment and sales motion change the amount materially. Compare your CAC with gross-profit customer lifetime value and payback. Benchmarkit's 2026 B2B SaaS sample reported a 4.1:1 median CLTV:CAC and 16-month median CAC payback, not a single dollar CAC for every business.

What is a good CLV to CAC ratio?

CLV and LTV both mean customer lifetime value. Stripe describes 3:1 as a common SaaS planning target. Benchmarkit's 2026 B2B SaaS and AI-native sample reported a 4.1:1 median CLTV:CAC; the right target for you also depends on your segment and how quickly CAC pays back.

What is an ideal customer acquisition cost?

Start with gross-profit LTV and a target LTV:CAC ratio. Maximum fully loaded CAC equals LTV divided by the target ratio. At $600 LTV and a 3:1 target, the ceiling is $200 per new customer. Check payback and cash flow before treating that ceiling as a spending recommendation.