CAC Calculator
Know what it really costs to win a customer.
Customer Acquisition Cost (CAC) is the total sales and marketing spend required to win one new customer. It is the metric that decides whether a growth channel scales profitably or quietly drains cash.
Enter your spend and the number of customers acquired below. Add your average customer lifetime value to see the all-important LTV:CAC ratio and how many months it takes to pay back the cost of acquisition.
Enter your numbers
Optional — used for LTV:CAC ratio.
Optional — used for payback period.
Results
Frequently asked questions
What is a good LTV:CAC ratio?
A ratio of 3:1 is the widely cited benchmark — you earn three times what it costs to acquire a customer. Below 1:1 you lose money on every customer; far above 3:1 can mean you are under-investing in growth.
Should CAC include salaries?
A fully loaded CAC includes everything spent to acquire customers: ad spend, agency fees, sales and marketing salaries, and tooling. A 'blended' CAC that omits salaries will look artificially low.
What is CAC payback period?
It is the number of months of revenue (or gross profit) it takes to recover the cost of acquiring a customer. Under 12 months is strong for most subscription businesses.