Setu.Technology

Free Tool — CAC Calculator

Customer Acquisition Cost Calculator

Enter your marketing spend and new customers acquired to find your cost per customer.

Customer acquisition cost

₹500.00

Revenue-to-CAC ratio

1.6x

The number that tells you if marketing is working

Customer Acquisition Cost (CAC) is the average amount you spend to win one new customer, across all the marketing and sales costs that went into acquiring them. It only means something next to a second number — what that customer is actually worth to you.

Enter your total spend over a period and the number of new customers it brought in to get your CAC. If you also know the average revenue per customer, this calculator shows the ratio between the two — a quick gut-check on whether a campaign or channel is actually paying for itself.

Customer acquisition cost formula

CAC = Marketing & sales spend ÷ New customers acquired, for the same period. Revenue-to-CAC ratio = Average revenue per customer ÷ CAC. The ratio is shown only when you enter an average revenue figure; leave that field empty and it shows a dash.

How to use the CAC calculator

  1. 1Choose one period, such as a month, a quarter or the length of a single campaign, and use it for every figure.
  2. 2Enter Marketing & sales spend: the total you spent in that period to win new customers.
  3. 3Enter New customers acquired: first-time customers only, not repeat visits or returning patients.
  4. 4Optionally enter Average revenue per customer, ideally what a new customer spends with you over a fixed window such as their first six months.
  5. 5Read Customer acquisition cost and the Revenue-to-CAC ratio. A ratio below 1x means a typical customer brings in less revenue than it cost to win them.
  6. 6Repeat with the spend and new-customer count for each channel to see which one is cheapest.

Worked example: CAC for a clinic spending ₹30,000 a month

A physiotherapy clinic spends ₹20,000 on Google ads and ₹10,000 on a local newspaper insert in one month, and gets 80 new patients. Entered as one total, the CAC calculator gives ₹30,000 ÷ 80 = ₹375 per new patient. If a new patient spends ₹1,500 on average over a course of treatment, the revenue-to-CAC ratio is ₹1,500 ÷ ₹375 = 4x.

Run the channels separately and the picture changes. The ads brought 64 patients, a CAC of ₹312.50 and a ratio of 4.8x. The newspaper brought 16, a CAC of ₹625 and a ratio of 2.4x. The ratio uses revenue, not profit. If the clinic keeps 40% of revenue after consumables and therapist pay, the newspaper returns ₹0.96 of gross profit for every ₹1 spent (2.4 × 40%), so it does not quite pay for itself, while the ads return ₹1.92. Comparing CAC with customer lifetime value rather than one course of treatment makes this kind of call clearer.

Tips for an accurate CAC

  • Count only first-time customers. Including repeat visits inflates the customer count and makes CAC look lower than it is.
  • Allow for delay. Customers often arrive weeks after you pay for ads, so measure over a full month or quarter rather than a few days.
  • Tag every new customer's source, by asking at billing or giving each channel its own coupon code, so you can calculate CAC per channel.
  • Compare against gross profit, not just revenue. Multiply the revenue-to-CAC ratio by your gross margin to see how much gross profit each rupee of marketing returns.
  • Do not judge a channel on first-bill revenue alone. A low ratio on the first visit can still work if those customers return regularly, so check their repeat rate before cutting it.
  • Track CAC every month. A steady rise on the same channel can mean the audience has tired of the ad or offer, or that more competitors are targeting the same customers.

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CAC calculator FAQs

CAC = Total Marketing and Sales Spend ÷ Number of New Customers Acquired, over the same period. Spending ₹50,000 to acquire 100 new customers gives a CAC of ₹500.

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