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CAC calculator

Work out what each new paying customer costs you, and how many months of gross profit it takes to earn that back.

Results

Customer acquisition cost
$75.00
CAC payback
CAC ÷ (ARPU × gross margin)
3.2 months
Total acquisition spend
$3,000

CAC formulas

  • CAC = (marketing spend + sales spend) ÷ new paying customers
  • CAC payback = CAC ÷ (ARPU × gross margin), in months

Example

$3,000 of ads and content brings 40 new customers paying $29 a month at an 80% margin: CAC = $75, paid back in 3.2 months.

Benchmarks

CAC paybackWhat it means
Under 6 monthsExcellent: you can scale acquisition from cash flow
6–12 monthsHealthy for most small SaaS
12–24 monthsNeeds low churn or annual plans to work
Over 24 monthsAcquisition probably loses money

When you buy a SaaS, ask for the spend and the customers it brought, per channel: a business that grows only through paid ads is worth less than one with organic acquisition. Compare CAC with lifetime value in the LTV calculator.

Frequently asked questions

How do you calculate customer acquisition cost?

CAC = total sales and marketing spend in a period ÷ new paying customers acquired in that period. $3,000 of spend for 40 new customers is a $75 CAC.

What is CAC payback?

The number of months a customer needs to repay its acquisition cost from gross profit: CAC ÷ (ARPU × gross margin). Under 12 months is considered good for small SaaS.

Should I include free or organic customers in CAC?

Blended CAC divides all spend by all new customers, including organic ones. Paid CAC only counts customers from paid channels. Track both: blended CAC flatters a business with strong SEO, paid CAC tells you if ads scale.

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