CAC Calculator
CAC is evaluated from Total Sales & Marketing Spend, New Customers Acquired and Monthly Revenue per New Customer. The calculation reports Customer Acquisition Cost, CAC Payback Period and Avg Monthly S&M Spend per Customer.
Results
About the CAC Calculator
The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
CAC = total S&M spend / new customers
Payback = CAC / (monthly revenue per customer x gross margin%)
S&M efficiency = total spend / (new customers x annual revenue per customer)
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: CAC = total S&M spend / new customers Payback = CAC / (monthly revenue per customer x gross margin%) S&M efficiency = total spend / (new customers x annual revenue per customer) Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: B2B SaaS: $180,000 quarterly S&M spend, acquired 45 new customers at $299/mo, 72% margin
Inputs
With Total Sales & Marketing Spend = 180,000, New Customers Acquired = 45, Monthly Revenue per New Customer = 299 and Gross Margin% = 72 as the stated inputs, the result is Customer Acquisition Cost = $4,000, CAC Payback Period = 18.6 months and Avg Monthly S&M Spend per Customer = $4,000/customer. Each value corresponds to the declared output fields.
Example 2: D2C e-commerce: $45,000/month ad spend, acquired 750 new customers, AOV $85, 45% margin
Inputs
With Total Sales & Marketing Spend = 45,000, New Customers Acquired = 750, Monthly Revenue per New Customer = 28.33 and Gross Margin% = 45 as the stated inputs, the result is Customer Acquisition Cost = $60, CAC Payback Period = 4.7 months and Avg Monthly S&M Spend per Customer = $60/customer. Each value corresponds to the declared output fields.
Example 3: Insurance agency: $28,000/month in leads, marketing, outreach; acquired 18 new policies at $280/mo avg premium
Inputs
With Total Sales & Marketing Spend = 28,000, New Customers Acquired = 18, Monthly Revenue per New Customer = 280 and Gross Margin% = 15 as the stated inputs, the result is Customer Acquisition Cost = $1,555.56, CAC Payback Period = 37 months and Avg Monthly S&M Spend per Customer = $1,556/customer. Each value corresponds to the declared output fields.
Example 4: Startup tracking blended CAC: $55k/month burn on S&M across 3 channels, 92 customers acquired this month
Inputs
With Total Sales & Marketing Spend = 55,000, New Customers Acquired = 92, Monthly Revenue per New Customer = 149 and Gross Margin% = 68 as the stated inputs, the result is Customer Acquisition Cost = $597.83, CAC Payback Period = 5.9 months and Avg Monthly S&M Spend per Customer = $598/customer. Each value corresponds to the declared output fields.
Common Use Cases
- Calculate CAC from total sales and marketing spend
- Determine CAC payback period from monthly revenue per customer
- Analyze marketing efficiency and compare to LTV