Customer Acquisition Cost Calculator
Calculate Customer Acquisition Cost (CAC) from sales and marketing spend and new customers acquired, with an optional LTV:CAC ratio.
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Results
Customer Acquisition Cost
$200.00
LTV:CAC Ratio
3.00:1
How to Calculate Customer Acquisition Cost (CAC)
Customer Acquisition Cost divides your total sales and marketing spend over a period by the number of new customers you acquired in that same period. If you also know your average customer lifetime value (LTV), this calculator shows the LTV:CAC ratio, a widely used measure of how efficiently that spend is turning into profitable customers.
Example
Spending $50,000 on sales and marketing in a month that brings in 250 new customers gives a CAC of $50,000 ÷ 250 = $200 per customer. If the average customer is worth $600 in lifetime value, the LTV:CAC ratio is 600 ÷ 200 = 3:1.
Common Use Cases
- Tracking how efficiently marketing and sales spend converts into new customers over time.
- Comparing CAC across different channels or campaigns to see which is most cost-effective.
- Checking whether current spending is sustainable relative to what a customer is worth long-term.
FAQs
What counts as "sales and marketing spend"?
Typically this includes advertising spend, sales and marketing salaries, tools and software, and any agency or contractor fees directly tied to acquiring new customers during the period you're measuring — not general overhead unrelated to acquisition.
What's a healthy LTV:CAC ratio?
A commonly cited guideline is that a ratio of 3:1 or better is healthy — meaning a customer is worth at least three times what it costs to acquire them. A ratio below that can signal spend is too high relative to the value customers bring, while a very high ratio can sometimes mean a company is under-investing in growth.
Do I need to know LTV to use this calculator?
No — the LTV field is optional. Leave it blank or at zero to see just the CAC figure; entering an LTV estimate additionally shows the LTV:CAC ratio for context.