Customer Acquisition Cost (CAC)
1 min Read · Updated June 30, 2025
Calculate the true cost of acquiring new customers
Customer Acquisition Cost (CAC) represents the total cost of acquiring a new customer, including all marketing expenses, sales team costs, and related overhead.
How to Calculate CAC
The basic CAC formula is:
CAC = Total Acquisition Costs / Number of New Customers Acquired
For example, if you spent $10,000 on marketing and sales in a month and acquired 100 new customers, your CAC would be $100.
What to Include in CAC
Marketing Costs: Advertising, content creation, marketing tools
Sales Costs: Salaries, commissions, sales software
Overhead: Portion of office space, utilities, management time
Technology: CRM, marketing automation, analytics tools
CAC by Channel
It’s important to calculate CAC for different acquisition channels:
Paid Advertising: Google Ads, Facebook Ads, LinkedIn
Content Marketing: Blog, SEO, social media
Email Marketing: Campaigns, automation sequences
Referrals: Referral program costs
Direct Sales: Inside sales, field sales teams
CAC Optimization Strategies
- Improve Conversion Rates: Optimize landing pages and sales funnels
- Target Better Audiences: Focus on high-intent prospects
- Automate Processes: Reduce manual sales and marketing work
- Improve Retention: Higher LTV justifies higher CAC
- Optimize Channels: Focus budget on most efficient channels
CAC Benchmarks
B2B SaaS: $200-$400 for SMB, $1,000+ for enterprise
B2C SaaS: $20-$200 depending on price point
E-commerce: $10-$50 for most categories
The key is ensuring your CAC is significantly lower than your Customer Lifetime Value (LTV).