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CAC Calculator
Work out your customer acquisition cost.
Customer acquisition cost (CAC) calculator
Enter your total marketing and sales spend, the new customers it acquired, and your average customer lifetime value to see your CAC, your LTV:CAC ratio, and a quick read on whether the economics work.
CAC = spend ÷ new customers. On its own it means little — what matters is CAC versus what a customer is worth. A 3:1 LTV:CAC ratio or better is the common health bar; under 1:1 you lose money on every acquisition. Estimate the LTV side with the LTV calculator, and raise your ceiling with a higher average order value.
Frequently asked questions
How do you calculate CAC?
CAC = total sales & marketing spend ÷ number of new customers acquired in the same period.
What is a good LTV:CAC ratio?
A ratio of 3:1 or higher is generally healthy — you earn at least 3× a customer’s lifetime value over what it cost to acquire them. Below 1:1 means you lose money on each new customer.
How do I lower CAC?
Improve ad targeting and creative, raise conversion rate, add organic and referral channels, and increase repeat purchases so paid acquisition works harder.