CAC calculator.

CAC is marketing spend divided by new customers. Payback is how many months of gross profit it takes to earn that back.

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Count only first-time buyers as new customers. Include agency fees in spend for a fully loaded CAC.

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The short answer

CAC (customer acquisition cost) equals total marketing spend divided by new customers in the same period. CAC payback equals CAC divided by the monthly gross profit each customer brings in. A brand spending $15,000 to win 300 new customers has a $50 CAC. Under 12 months to pay back is healthy for most consumer brands.

How do you calculate CAC?

CAC = marketing spend ÷ new customers

Use the same period for both, and count only first-time buyers. $15,000 in spend and 300 new customers is a $50 CAC.

What should count as marketing spend?

Two versions are worth tracking. Media-only CAC uses ad spend alone and is good for comparing campaigns. Fully loaded CAC adds agency fees, freelancers, creative and tools, and it's the one that tells you what growth really costs. Use fully loaded CAC for budget and pricing decisions.

How do you calculate CAC payback?

Payback (months) = CAC ÷ monthly gross profit per customer

Monthly gross profit per customer is average order value × gross margin × orders per year ÷ 12. In the calculator's example: $60 × 55% × 2.5 ÷ 12 = $6.88 a month. A $50 CAC divided by $6.88 pays back in about 7.3 months.

If the first order's gross profit ($60 × 55% = $33 here) is bigger than CAC, you're paid back on day one and every repeat order is profit.

What's the difference between CAC and CPA?

CPA (cost per acquisition) is what an ad platform paid for a conversion, which can include repeat buyers and is usually media-only. CAC counts only new customers and, fully loaded, every marketing cost. CPA is for running campaigns. CAC is for running the business.

How do you lower CAC?

  • Raise conversion rate so the same traffic produces more first orders.
  • Refresh creative before ads fatigue and costs climb.
  • Grow organic channels, like SEO and AI search, that bring customers without a media bill.
  • Cut spend that doesn't hold up in MER, even if platform numbers look good.

CAC only means something next to what a customer is worth. Check that with the LTV calculator, or see all free marketing calculators.

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How do you calculate customer acquisition cost?
Customer acquisition cost equals total marketing spend divided by the number of new customers in the same period. A brand that spends $15,000 and wins 300 first-time buyers has a $50 CAC. Fully loaded CAC includes agency fees, creative and tools as well as ad spend.
What is a good CAC payback period?
Under 12 months is healthy for most consumer brands, and payback on the first order is ideal. Payback equals CAC divided by the monthly gross profit per customer. Longer payback ties up cash that a startup could use to grow.
What is the difference between CAC and CPA?
CPA is the cost an ad platform paid for a conversion, often media-only and sometimes including repeat buyers. CAC counts only new customers and, when fully loaded, every marketing cost. CPA guides campaigns; CAC guides budget and pricing.
What is a good CAC for a startup?
A good CAC is one that customer lifetime value covers about three times over, so a customer worth $150 in gross profit supports a CAC up to $50. The right number depends on margin and repeat purchase rate, not on an industry average.

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