CAC Calculator

Customer acquisition cost & LTV:CAC ratio

What does it cost to win a customer? Enter your sales and marketing spend and the customers it brought in to calculate your CAC — the cornerstone of profitable growth.

How CAC works

Customer acquisition cost is everything you spent on sales and marketing divided by the number of new customers it produced. Spending $6,000 to land 50 customers is a $120 CAC. The number only means something next to lifetime value: a healthy LTV:CAC ratio is around 3:1. Below 1:1 you lose money on every customer; far above 3:1 can mean you're underinvesting in growth.

CAC Calculator: frequently asked questions

What costs go into CAC?

All sales and marketing costs for the period — ad spend, salaries, software and agency fees — divided by the new customers acquired in that same period.

What is a good LTV:CAC ratio?

Around 3:1 is the common benchmark — you earn three times what it costs to acquire a customer. Add your customer LTV above to see your ratio.

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