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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
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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.
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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.
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