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CAC Calculator

Calculate customer acquisition cost, plus LTV:CAC ratio and payback.

Calculated locally in your browser.

How do you calculate customer acquisition cost (CAC)?

CAC = total sales & marketing spend ÷ new customers acquired. The LTV:CAC ratio = lifetime value ÷ CAC, and CAC payback (months) = CAC ÷ monthly revenue per customer. For example, spending $50,000 to acquire 500 customers is a CAC of $100; with a $600 LTV, the LTV:CAC ratio is a healthy 6:1.

Understanding your result

A lower CAC means more efficient growth, but it only matters relative to the value a customer brings. An LTV:CAC ratio of about 3:1 is a common healthy benchmark; much higher can mean you are under-investing in growth, much lower means acquisition is too expensive. A short payback period reduces cash-flow risk.

Formula and method

CAC = total sales & marketing spend ÷ new customers acquired. LTV:CAC ratio = lifetime value ÷ CAC. CAC payback (months) = CAC ÷ monthly revenue per customer.

Assumptions and limitations

CAC here divides the spend and customer count you enter, so it depends on which costs you include and the period you measure. It ignores attribution lags, organic acquisition, cohort differences and seasonality, and payback assumes steady revenue. Use it to compare channels and track efficiency over time, not as a precise single number.

Worked example

Spending $50,000 to acquire 500 customers is a CAC of $100. With a $600 LTV, the LTV:CAC ratio is 6:1, which is healthy.

How to use this tool

  1. Enter your total sales and marketing spend for the period.
  2. Enter the number of new customers acquired.
  3. Optionally add lifetime value and monthly revenue per customer.
  4. Read the CAC, ratio and payback.

Common mistakes to avoid

  • Leaving out some acquisition costs, such as salaries or tools.
  • Counting customers from a different period than the spend.
  • Judging CAC without comparing it to lifetime value.

About the CAC Calculator

The CAC Calculator works out your customer acquisition cost — the average spend to win one new customer. Add lifetime value or monthly revenue to see the LTV:CAC ratio and how long it takes to earn the cost back.

Who should use this tool

Founders, marketers and growth teams measuring the efficiency of their acquisition spend.

Benefits

  • Customer acquisition cost in one step.
  • Optional LTV:CAC ratio with a health check.
  • Optional CAC payback period in months.
  • Private — your figures stay in your browser.

Practical use cases

  • Comparing CAC across channels or campaigns.
  • Checking whether acquisition is profitable against LTV.
  • Reporting unit economics to your team or investors.

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Frequently asked questions

What counts as acquisition spend?

All sales and marketing costs for the period — ad spend, salaries, commissions, software and agency fees — divided by the customers those efforts won.

What is a good LTV:CAC ratio?

Around 3:1 is a common healthy target. Below 1:1 means you lose money on each customer; very high can mean you should invest more in growth.

What is CAC payback?

The number of months of revenue from a customer needed to recover their acquisition cost. Shorter is better for cash flow.

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