Business & Marketing

Customer Acquisition Cost (CAC) Calculator

How much does it cost to win one customer, and is it worth it?

Your numbers

Symbol only: enter amounts in the currency you pick.
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Your results

CAC
CAC
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LTV : CAC ratio
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Lifetime profit per customer
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Customer Acquisition Cost (CAC) Calculator by TheCalcTools

How the Customer Acquisition Cost (CAC) Calculator works

Add all marketing and sales costs for the period.

Enter how many new customers you acquired in the same period.

Compare CAC with the lifetime value of a customer.

The formula

CAC = (marketing + sales costs) ÷ new customersLTV : CAC = LTV ÷ CAC

Worked example

Using the default values shown in the calculator:

Marketing spend$18000
Sales costs$12000
New customers150
Customer lifetime value$900
  1. CAC = ($18,000 + $12,000) ÷ 150 = $200.00.
  2. LTV : CAC = 900 ÷ 200 = 4.50.

Result:

CAC$200.00
LTV : CAC ratio4.50
Lifetime profit per customer$700.00

Frequently asked questions

What is a healthy LTV to CAC ratio?

Many SaaS investors look for 3:1 or better. Below 1:1 you lose money on each customer.

What costs go into CAC?

Ad spend, content, salaries and commissions of marketing and sales staff, tools and overhead directly tied to acquisition.

Sources and further reading

More in Business & Marketing · All calculators

This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.