Customer Acquisition Cost Calculator

CAC is the average amount you spend to win one new customer. It is calculated by dividing all your sales and marketing costs for a period by the number of new customers acquired in that same period.

It sums the cost fields you enter — advertising, staff, software, referral or loyalty rewards, sales time, and other costs — then divides that total by the number of new customers you acquired, giving you cost per new customer.

Include anything spent to win new business: paid ads, agency or freelancer fees, marketing software subscriptions, referral or loyalty program payouts, sales staff time or commissions, and promotional materials. Exclude costs tied to retaining existing customers.

It varies by service and location, but the real test is whether CAC is comfortably lower than what a customer is worth over time. Use the optional lifetime value field to see your LTV:CAC ratio and judge profitability.

It compares customer lifetime value to acquisition cost. A ratio below 1:1 means you lose money per customer, while most healthy service businesses target 3:1 or higher, showing acquisition spend converts into durable profit.

Yes, it is completely free with no registration. All calculations run locally in your browser — nothing you enter is uploaded, stored, or shared, and results disappear when you leave or reset the page.