Free Customer Acquisition Cost [CAC] Calculator

What is Customer Acquisition Cost?

Customer Acquisition Cost (CAC) is the total cost a company spends to acquire a new customer.

It includes:

• marketing,
• advertising,
• sales team salaries,
• software tools,
• and any other costs directly associated with attracting and converting prospects into paying customers.

How to Calculate Customer Acquisition Cost

To calculate Customer Acquisition Cost (CAC), divide the total sales and marketing expenses by the number of new customers acquired in a given period.

For example, a SaaS company like Slack might spend $500,000 on marketing campaigns, paid ads, and sales team salaries in a quarter.

If Slack gains 5,000 new paying customers during that period, its CAC would be $500,000 ÷ 5,000 = $100 per customer.

This means Slack spends an average of $100 to acquire each new customer.

By optimizing marketing strategies and reducing inefficient spending, SaaS companies can lower their CAC and improve profitability.