Customer Acquisition Cost (CAC) Calculator
Calculate what it costs to acquire one customer across sales and marketing.
What the Customer Acquisition Cost (CAC) Calculator does
CAC is total sales and marketing spend divided by customers acquired in the same period. On its own it means little — it only becomes meaningful when compared to what those customers are worth over their lifetime.
Formula
CAC = (Marketing spend + Sales spend) ÷ New customers acquiredLTV:CAC ratio = Lifetime value ÷ CAC
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Marketing spend | selected currency | Yes | Accepts 0 or more. |
| Sales spend | selected currency | Optional | Salaries, commission, tools. Accepts 0 or more. |
| New customers acquired | number | Yes | Accepts 1 or more. |
| Customer lifetime value | selected currency | Optional | Optional — shows the LTV:CAC ratio. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Marketing spend and New customers acquired.
- Optionally add Sales spend and Customer lifetime value.
- Select Calculate.
Worked example
$45,000 marketing and $30,000 sales spend acquiring 250 customers, each worth $900.
- Marketing
- 45000
- Sales
- 30000
- Customers
- 250
- LTV
- 900
CAC $300, LTV:CAC of 3:1 — right on the healthy benchmark.
Frequently asked questions
What is a good LTV:CAC ratio?
3:1 is the widely cited benchmark. Below 1:1 you lose money on every customer. Far above 3:1 can mean you are underinvesting in growth.
Should salaries be included in CAC?
Yes — fully loaded sales and marketing salaries, commission and tooling. Ad spend alone understates the true cost considerably.