Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
How to calculate customer acquisition cost (CAC) in Excel and Google Sheets
Topic:SaaS metricsExcel & Google Sheets
=B7/C7✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Cost Category | Amount ($) | New Customers |
| Salaries | 40000 | |
| Ad Spend | 15000 | |
| Software Tools | 3000 | |
| Events | 5000 | |
| Agency Fees | 7000 | |
| Total | 70000 | 140 |
=B7/C7→500
Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
Step by step
- 1List each sales and marketing cost category in column A (rows 2–6): salaries, ad spend, software tools, events, and agency fees.
- 2Enter each cost amount in column B alongside its category.
- 3In cell B7, sum all costs: =SUM(B2:B6).
- 4In cell C7, enter the number of new customers acquired during the same period.
- 5In cell D7, calculate CAC with =B7/C7. Format as currency.
Tips
- Include fully loaded costs — salaries, benefits, and overhead for every sales and marketing employee, not just direct ad spend.
- Use the same time period for spend and new customers. A common error is using last quarter's spend against this quarter's new customers, which distorts the metric.
- Calculate blended CAC and channel-specific CAC separately. Blended CAC hides which acquisition channels are efficient.
Need it for your exact data?
Describe your columns in plain English and get the precise formula for your sheet, with the right Excel or Sheets syntax.
Frequently asked
Should I include the cost of free trials in CAC?
Yes, if infrastructure or support costs are material during the trial. Many teams include trial-related costs because they are incurred to acquire paying customers.
What is a good CAC for a SaaS company?
CAC is most meaningful relative to LTV. An LTV:CAC ratio above 3:1 is the common benchmark, with CAC recovered within 12–18 months.
How often should I recalculate CAC?
Monthly for operational decisions, quarterly for investor reporting. Monthly calculation catches spend efficiency changes faster.
More on SaaS metrics
See all →Reference
RANDARRAY
Spills a grid of random numbers with specified rows, columns, min, max, and integer/decimal options. Excel 365 and Google Sheets only.
How-toHow to calculate churn rate
Calculate monthly or annual customer churn rate as lost customers divided by starting customers, expressed as a percentage, in Excel and Google Sheets.
Error fixFix #####
Fix ##### in Excel — the column is too narrow to display the number or date. Widen the column or change the format to resolve it.
ReferenceARRAYTOTEXT
Converts an array or range into a single text string, with concise or strict formatting options.
How-toHow to calculate monthly recurring revenue (MRR)
Learn how to calculate MRR in Excel and Google Sheets using SUMIF to sum active subscription revenue by billing period, normalized to a monthly figure.
Error fixFix Array result
Array result was not expanded in Google Sheets means output cells are blocked. Clear adjacent cells or use a blank area.