Calculator Guides
How to Calculate CAC (Customer Acquisition Cost): Formula & Free Calculator
Customer Acquisition Cost (CAC) measures how much you spend to acquire each new customer. It is essential for understanding whether your growth is sustainable and whether your unit economics work.
The CAC formula
CAC = Total Sales and Marketing Spend / Number of New Customers Acquired. For example, if you spend $5,000 on marketing in a month and acquire 50 customers, your CAC is $100.
Include all costs: ad spend, content creation, sales team salaries, tools, and any other expense directly related to acquiring customers.
What is a good CAC
The most important metric is the LTV:CAC ratio. A ratio of 3:1 or higher is considered healthy — meaning each customer generates at least 3x what it cost to acquire them.
For micro SaaS products using organic channels (content, SEO, Reddit), CAC can be very low. Paid acquisition typically produces higher CAC but scales faster.
Using the BigIdeasDB CAC Calculator
Navigate to Free Tools > CAC Calculator. Input your total marketing spend and new customer count. The calculator shows your CAC with benchmarks and ratio analysis.
Combine with the LTV Calculator to compute your LTV:CAC ratio automatically.
FAQ
What is a good CAC for SaaS?
It depends on your price point. For $30/month products, CAC under $100 is strong. The key metric is LTV:CAC ratio — aim for 3:1 or higher.
How do I reduce CAC?
Focus on organic channels like content marketing, SEO, and community engagement. BigIdeasDB's help center and blog are examples of SEO-driven acquisition with near-zero marginal cost.
Is the CAC calculator free?
Yes. BigIdeasDB's CAC Calculator is 100% free with no login required.
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