Calculate CAC, LTV:CAC ratio, and break down marketing vs sales spend
How it works
Customer Acquisition Cost divides everything you spent winning customers by the number of customers won. It is the denominator in every efficiency ratio a board will ask about, and its accuracy depends entirely on what you include.
CAC = (Sales spend + Marketing spend) / New customers acquired
Sales spendsalaries, commissions, tools, and travel for the sales teamMarketing spendad spend, content, events, agency fees, marketing salariesNew customersnewly acquired paying customers in the same period
- Total spend: 180,000 + 60,000 = 240,000
- 240,000 / 400
- Fully loaded CAC includes sales and marketing salaries alongside ad spend. Excluding headcount is the standard way companies make CAC look better than it is.
- Blended CAC divides by all new customers including organic ones; paid CAC divides paid spend by paid-sourced customers only. Report both, because blended CAC falls as brand grows even when paid efficiency worsens.
- Match the period with the sales cycle. Spend in Q1 that closes in Q3 makes a same-quarter ratio meaningless for long enterprise cycles.
- Expansion and renewal costs belong outside CAC. Mixing them in inflates the cost of new logos and hides retention spend.
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Frequently Asked Questions
Yes. Cac Calculator costs nothing, needs no account, and runs right in your browser. There is no paywall, no watermark on the results, and no limit on how many times you can run the numbers.
Cac Calculator uses the standard formula for this kind of calculation, so the output is only as good as the figures you type in. Rates, fees, and rules in finance shift over time, and we review the underlying assumptions on a regular schedule; check the "Last reviewed" date above for the most recent pass. Spotted something off? There's a feedback button in the bottom-right corner.