CAC Customer Acquisition Cost Calculator
January 10, 2026
Customer Acquisition Cost (CAC) Calculator
What is CAC Customer Acquisition Cost in Marketing?
CAC (Customer Acquisition Cost) is how much money you spend to get one paying customer.
Total acquisition cost includes:
- Any other marketing or sales expenses
- Advertising spend
- Sales team cost
- Software/tools used for acquisition
How to calculate CAC (Customer Acquisition Cost)
Here's a Simple formula:
CAC = Total marketing + sales cost ÷ New customers acquired
Example:
You spent ₹50,000 on ads and tools in a month.
You got 25 customers.
CAC = 50,000 ÷ 25 = ₹2,000
| Metric | Value |
|---|---|
| Spend | ₹50,000 |
| Customers | 25 |
| CAC | ₹2,000 |
Why does it matter to calculate CAC
CAC tells you whether your growth is:
- Profitable
- Sustainable
- Or quietly killing your business
If your CAC is higher than what a customer ever pays you, you're buying revenue at a loss.
Founders use CAC to:
- Understand if growth is healthy or fake
- Decide whether to scale ads
- Compare channels (Google vs Meta vs Sales)
Benchmarks
It is also important to understand the standard LTV (Customer Lifetime Value) to CAC (Customer Acquisition Cost) Benchmarks.
| LTV:CAC Ratio | Meaning |
|---|---|
| Below 1 | Losing money |
| 1–3 | Risky |
| 3+ | Healthy |
