CAC calculator
Calculate customer acquisition cost from marketing spend and new customers, plus your LTV:CAC ratio and payback period. Free CAC calculator.
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Live results
Customer acquisition cost
$250.00
LTV : CAC ratio
5.60x
CAC payback (months)
3.6
What this calculator does
The CAC Calculator computes true customer acquisition cost: total sales and marketing spend divided by new customers won in the same period. Add average customer lifetime value and monthly revenue per customer to get the two numbers investors and owners actually judge acquisition by - the LTV:CAC ratio and the CAC payback period in months. Agencies use it to prove channel economics to clients ("your Google Ads CAC is $180 against a $1,400 LTV"), and SaaS or e-commerce operators use it to decide whether acquisition spend can scale. Include agency fees, tools, and salaries in the spend figure for honest CAC; ad spend alone understates it.
How to use this calculator
- 1
Enter total sales + marketing spend for the period (ads, fees, tools, people).
- 2
Enter new customers acquired, average LTV, and monthly revenue per customer.
- 3
Judge the result: LTV:CAC of 3:1+ and payback under 12 months are healthy targets.
Why this matters for agencies
CAC is where marketing meets the P&L. A campaign can have great ROAS and still acquire customers the business loses money on - or a mediocre-looking channel can be the cheapest source of long-term customers. LTV:CAC and payback period reveal which.
Frequently asked questions
What is a good LTV to CAC ratio?
3:1 is the common health benchmark. Below 1.5:1 the business likely loses money acquiring customers; far above 5:1 often means under-investing in growth.
What costs belong in CAC?
Everything spent to acquire customers in the period: ad spend, agency and freelancer fees, marketing tools, content costs, and the salaries of people doing acquisition work. Ad-spend-only CAC flatters the number.
How is CAC payback period calculated?
CAC divided by monthly revenue (or gross margin) per customer. A $250 CAC recovered at $70/month pays back in about 3.6 months. Under 12 months is a common SaaS target.
Should CAC be calculated per channel?
Yes, alongside the blended number. Blended CAC judges the whole engine; per-channel CAC decides where the next dollar goes. Both belong in a monthly report.
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