How to Calculate Your Customer Acquisition Cost (CAC)
Co-Founder, HelloGrowthCRM · March 27, 2026 · 1 min read
Quick Answer
CAC = Total Sales and Marketing Spend ÷ Number of New Customers Acquired (in the same period). For an accurate figure, include salaries, ad spend, tools, and agency fees — not just ad budget. Healthy B2B SaaS CAC-to-LTV ratios are 1:3 or better. Indian SMBs with a 12-month ACV typically target CAC payback within 6–9 months.
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What Is Customer Acquisition Cost?
CAC is the total cost to acquire one customer (sales and marketing spend divided by new customers). It's a core metric for unit economics. Lower CAC with better targeting, conversion, and retention. Our glossary has more on CAC and related terms.
How to Calculate CAC
CAC = (Sales + Marketing spend) / New customers in the period. Include salaries, ads, tools, and programs.
Use our CAC calculator to plug in your numbers and see how changes affect CAC.
Using Your CRM to Improve CAC
A CRM helps you track lead source, conversion, and pipeline. Use AI lead scoring to focus on high-intent leads and improve conversion.
Clean data and follow-up automation reduce wasted effort. HelloGrowthCRM gives you the data and tools; see features and pricing.
Next Steps
Run your numbers in the CAC calculator. Compare with LTV and payback period.
Use HelloGrowthCRM to improve conversion and track ROI. Start a free trial or book a demo to see how we help teams improve CAC.
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Harnish Shah is co-founder of Soor LLC and oversees engineering and growth at HelloGrowthCRM. He brings expertise in AI-driven software architecture and go-to-market systems for B2B SaaS, and has helped early-stage companies scale their sales infrastructure.
