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Customer Acquisition Cost (CAC)

Calculate your customer acquisition cost across marketing channels. Break down spending, compare channel efficiency, and benchmark against industry targets.

Marketing Channels

Enter spend and customers acquired for each marketing channel. Add or remove channels as needed.

Additional Acquisition Costs

Include overhead costs that contribute to customer acquisition but aren't tied to a specific channel.

Period for the figures entered above.
Results update as you type.

How It Works

Customer Acquisition Cost (CAC) measures the total cost of acquiring a new customer:

CAC = Total Sales & Marketing Spend / Number of New Customers Acquired

Blended CAC combines all channels and overhead into a single figure:

Blended CAC = (Channel Spend + Sales Salaries + Tools + Other Overhead) / Total Customers

Channel Efficiency compares each channel's share of customers to its share of spend:

Efficiency = (% of Customers Acquired) / (% of Spend) — values above 1.0 indicate an efficient channel.

Tips for Reducing CAC

Optimize Channels

  • Shift budget to channels with lowest CAC
  • A/B test ad creatives and landing pages
  • Invest in organic channels (SEO, content) for long-term gains
  • Implement referral programs to leverage existing customers

Improve Conversion

  • Streamline signup and onboarding flows
  • Use retargeting to convert warm leads
  • Qualify leads earlier to reduce wasted sales effort
  • Track attribution accurately across touchpoints

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