Free Tool

Customer Acquisition Cost Calculator

How much does it cost you to acquire one customer? Enter your marketing spend and new customers to find out – plus see your LTV:CAC ratio.

CAC Calculator Enter your data
Include ad spend, salaries, tools, and agency fees for the period.
Number of new paying customers gained during the same period.
Average customer lifetime value. Used to calculate LTV:CAC ratio.
For blended CAC payback period calculation.

Enter your spend and customer count to see your CAC and LTV ratio.

What is CAC and why it matters

Customer Acquisition Cost is the total cost of winning a new customer. It's the single most important metric for understanding whether your growth is sustainable or burning cash.

Formula: CAC = Total Marketing & Sales Spend / New Customers Acquired

Key CAC benchmarks

LTV:CAC ratio

A healthy business has LTV:CAC of 3:1 or higher. Below 1:1 means you're losing money on every customer. Between 1:1 and 3:1 means you're growing but at risk.

CAC payback period

How many months until a customer pays back their acquisition cost. Under 12 months is healthy for eCommerce; SaaS companies aim for under 18 months.

CRO reduces CAC

Improving your conversion rate directly reduces CAC – you get more customers from the same ad spend. A 20% CVR lift effectively cuts CAC by 17%.

CAC too high? Let's fix your funnel.

We help brands reduce CAC by improving conversion rates across the entire funnel – from landing page to checkout.

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Go deeper
GrowthCRO vs Paid Ads: Why Scaling Spend Burns CashPaid ads and CRO aren't separate growth channels — they're two levers in the same economic system. Here's why scaling ad spend without conversion work destroys margins, and how to fix it.