Transparent Growth Measurement (NPS)

Customer Acquisition Cost Calculator (CAC)

Measure What It Really Costs to Acquire a New Customer

Use our CAC Calculator to determine how much you’re spending to acquire each new customer through sales and marketing activities. This metric is critical for evaluating marketing ROI, managing budgets, and scaling your growth efficiently.

Why Use This Calculator?

 

  • Understand Cost Efficiency
    Calculate exactly how much you’re investing to bring in each customer—crucial for profitability tracking.
  • Improve Budget Allocation
    Spot high-cost acquisition channels and reallocate resources toward more efficient tactics.
  • Support Scalable Growth
    Ensure your acquisition cost aligns with long-term customer value and sustainable business growth.
  • Benchmark Performance
    Compare your CAC against industry standards and make data-driven improvements.
-

Hmmm… looks like we can help you refine those numbers for better results and profitability!

Get Started!

7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

Download

Why these 7 metrics are significant for your business and should be measured at regular intervals?

How to Use Customer Acquisition Cost (CAC) Calculator?

How to Use the Calculator – Step-by-Step

 

  1. Enter Annual Marketing & Sales Spend
    Sum up all acquisition-related costs for the past year.

  2. Input Number of New Customers
    Add the number of new paying customers acquired during the same year.

  3. Click ‘Calculate’
    Instantly view your Customer Acquisition Cost (CAC).

 

Tip: Compare this value with your Customer Lifetime Value (CLTV) to determine profitability.

 

Understanding Customer Acquisition Cost (CAC)

 

CAC is a foundational growth metric. It reveals how much you spend to gain one customer, guiding decisions in:

 

 

Formula:


CAC = Total Sales & Marketing Cost ÷ New Customers Acquired

 

This number becomes more powerful when paired with LTV to calculate your LTV: CAC Ratio. A healthy benchmark is 3:1—meaning your customer brings in 3× more value than they cost to acquire.

 

CAC Benchmarks (2024–25)

 

Industry Avg. CAC (INR)
SaaS (B2B) ₹5,000 – ₹20,000
Ecommerce ₹500 – ₹2,000
EdTech ₹1,000 – ₹3,500
Fintech ₹1,500 – ₹4,500
HealthTech ₹1,000 – ₹4,000

 

Source: upGrowth internal benchmarks & global studies (2023–24)

 

Practical Example

 

Inputs:

 

 

Calculation:


CAC = ₹12,00,000 ÷ 800 = ₹1,500

 

Interpretation:


You are spending ₹1,500 to acquire each customer. If your CLTV is ₹4,500, your LTV:CAC ratio is 3:1, which is healthy for growth.

 

Tips to Optimise CAC

 

Other Calculator

Explore More

Similar Blog's

How to calculate Marketing percentage Customer Acquisition Cost (CAC)
Customer Acquisition Costs (CAC) – what you pay on average to acquire new customers – is obviously pretty darn important.
LTV CAC Ratio: What is it, How to Calculate & More
The link between a customer’s lifetime value and the cost of acquiring them is measured by LTV/CAC. Client acquisition cost (CAC) is the cost incurred when a
https://www.upgrowth.in/ltv-cac-ratio-what-is-it-how-to-calculate-more/
Learn how to calculate CAC payback period and also understand why it is a crucial metric. Here is all you have to know on CAC. Read on!
What is Customer Acquisition Cost (CAC) and Why it’s Important to your Startup?
Customer acquisition cost is the cost associated with convincing a consumer to buy your product or service, including research, marketing
How to Calculate Customer Acquisition Cost with Formula
Customer acquisition cost (CAC) is a metric used to describe how much money companies spend acquiring new clients. In addition to calculating the resources
How to calculate Time Payback of Customer Acquisition Cost (CAC)
Do you know to what extent it takes for a client to pay back what it cost you to secure them? Do you know how you get your CAC

Offer’s

The ultimate digital marketing checklist with hacks, tips and more! Download it for FREE! Find the right strategy for your business with our checklist!

PPC Quizzes

Test your pay-per-click advertising expertise with interactive assessments. Stay sharp, refine strategies, and maximize ad performance.

Run productive experiments in Google Ads

You might be a Google Ads expert, but how smoothly can you run experiments in Google Ads?

Test Now
Test your knowledge of Google Ads extension

You might be skilled at running Google Ads, but can you effectively utilize extensions in Google Ads?

Test Now




FAQ's

Answers to Frequently Asked Questions

What is CAC in marketing?

Customer Acquisition Cost (CAC) refers to the average expense incurred to acquire one new customer through sales and marketing efforts.

How do I calculate Customer Acquisition Cost (CAC)?

Divide your total marketing and sales expenses by the number of new customers acquired during the same period.

What is a good CAC?

A “good” CAC depends on your business model and margins. Your Customer Lifetime Value (CLTV) should be three times your Customer Acquisition Cost (CAC).

Should I include salaries in the Customer Acquisition Cost (CAC)?

Yes. Include all personnel and tools contributing to sales and marketing efforts.

How often should I review CAC?

Quarterly is ideal. It helps you spot trends, shifts, or overspending early.

Can I improve CAC without reducing spend?

Yes. Improving conversion rates or onboarding more qualified leads can reduce customer acquisition costs (CAC) without requiring a budget cut.

Does CAC vary by channel?

Absolutely. Compare CAC by channel (e.g., Google Ads, organic search, referrals) to reallocate the Performance marketing budget more efficiently.

Contact Us