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Enter your data to compare affiliate vs. paid CAC
Affiliate Channel
Monthly visits from affiliate referrals
Industry average: 1–3%
Average revenue per customer referred by affiliates
Typical SaaS: 20–40% recurring
Software, tools, AM time
Paid Ad Channel
Total monthly paid advertising budget
Paid ads typically convert 0.5–2%
Revenue per converted customer
Affiliate Channel Results
New Customers / mo—
Commission Spend / mo—
Total Program Cost—
Affiliate CAC—
Paid Ad Channel Results
New Customers / mo—
Ad Spend—
Paid Ad CAC—
Comparison
CAC Savings (Aff vs Paid)—
Aff CAC is—
Aff. % cheaper—
Affiliate CAC vs. Paid Ad CAC: Which is Better?
Customer Acquisition Cost (CAC) is the most fundamental metric for comparing marketing channels. Affiliate CAC measures the total cost to acquire one customer through your affiliate program. Paid ad CAC measures the cost per customer from paid advertising.
How to Calculate Affiliate CAC
Affiliate CAC = (Monthly commission spend + Additional program costs) ÷ Number of new customers from affiliates
This formula captures all costs associated with your affiliate program, not just commissions paid.
When Affiliate CAC Beats Paid Ad CAC
- Established affiliates with warm audiences: Affiliates who have built trust with their audience convert better and cost less per customer
- High-consideration purchases: B2B SaaS, premium tools, and complex products convert better through peer recommendations than ads
- Long sales cycles: Affiliates provide ongoing nurture through content, reducing the per-customer cost over time
- Retention-heavy products: Affiliates bring customers with higher LTV, making higher CAC acceptable