DFWStrategy

Customer Acquisition Cost (CAC) Calculator

Calculate your cost to acquire each new customer. Compare CAC across channels to find your most efficient marketing spend.

Calculate Your CAC
Enter your marketing spend, sales costs, new customers, and margins to calculate your true customer acquisition cost and first-order profitability.
$

Ads, content, SEO, agency fees

$

Commissions, CRM, sales tools

In the same time period

$

Average first purchase/job value

%

Revenue minus cost of service delivery

Your CAC

Cost per new customer

$350.00

Gross Profit (First Order)

50% of revenue

$250.00

First Order Net Profit

Losing money

$-100.00

You're losing $100.00 per customer on the first order. Your customer lifetime value must exceed CAC for long-term sustainability, or you need to reduce CAC or increase margins.

What is Customer Acquisition Cost?

Customer Acquisition Cost (CAC) is the total cost to acquire one new paying customer. It's one of the most important metrics for understanding whether your marketing is sustainable and profitable.

CAC = (Marketing Costs + Sales Costs) ÷ New Customers

Example: ($5,000 marketing + $2,000 sales) ÷ 35 customers = $200 CAC

But CAC alone isn't enough—you must compare it against your gross profit per customer, not just revenue. A $500 service with 50% margin generates $250 in gross profit. If your CAC is $350, you're losing $100 on the first transaction, even though revenue exceeds CAC.

Revenue vs. Profit: The critical difference

Most businesses make the mistake of comparing CAC to revenue instead of gross profit. Always factor in your cost of goods/services. A positive first-order profit means you're immediately profitable. A negative first-order profit means you need repeat business or high LTV to break even.

CAC by Channel

Not all acquisition channels are equal. Track CAC separately by channel to understand where your most efficient customers come from. Learn more about how different channels perform in our PPC & Paid Acquisition analysis.

Typical CAC by Channel (Service Businesses)

Referrals

$25-75

Lowest CAC, highest trust

Organic/SEO

$50-150

Lower long-term CAC

Google Ads

$100-300

Fast but expensive

Social Ads

$75-200

Good for awareness

The hidden cost of 'free' channels

Organic and referral channels have lower direct costs, but require significant time investment. Factor in the opportunity cost of your time when comparing channels.

CAC Benchmarks for DFW Service Businesses

Understanding typical CAC ranges for your industry in Dallas–Fort Worth helps you benchmark your performance. See our Local SEO & Google Maps guide for strategies to reduce CAC through organic visibility.

Typical CAC by Industry

HVAC

$150-400

Higher ticket offsets cost

Plumbing

$100-250

Emergency vs. planned

Roofing

$200-500

Long sales cycle

Dental

$150-350

New patient acquisition

Legal

$300-1000+

Varies by practice area

Med Spa

$75-200

Strong repeat potential

Frequently Asked Questions

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LTV Calculator

Estimate the true lifetime value of your customers including repeat business and referrals. Critical for service businesses.

LTV:CAC Ratio

Calculate whether your customer acquisition costs are sustainable. See how your ratio compares to industry benchmarks.

CPL Calculator

Calculate your cost per lead across channels. Compare paid vs. organic vs. maps visibility to optimize spend.

Learn More

Explore our in-depth analysis on related topics.

PPC & Paid AcquisitionLocal SEO & Maps