CAC Calculator
Customer Acquisition Cost determines scalability. Calculate CAC across channels to optimize marketing spend and improve unit economics.
How the CAC Calculator works
Track marketing costs, sales expenses, and new customers by channel. Calculate blended and paid CAC, payback periods, LTV:CAC ratios, and channel performance metrics.
High CAC kills growth. This calculator reveals true acquisition costs, helping you optimize spending for sustainable, profitable customer growth.
How it works
Tutorial
Customer Acquisition Cost determines business scalability and profitability. High CAC relative to customer lifetime value kills growth potential, while optimized CAC across channels enables sustainable expansion with positive unit economics.
You have two options: use the calculator above for multi-channel CAC analysis, or follow this guide to manually calculate customer acquisition costs.
The Formula
| Metric | Formula |
|---|---|
| CAC | Total Marketing & Sales Costs ÷ New Customers |
| LTV:CAC Ratio | Customer Lifetime Value ÷ CAC |
| Payback Period | CAC ÷ Monthly Profit per Customer |
Step-by-Step Calculation
Here’s a complete CAC analysis with channel breakdown.
Step 1: Calculate Total Acquisition Costs
Add all marketing and sales expenses:
| Cost Category | Monthly Amount |
|---|---|
| Digital Advertising | $15,000 |
| Content Marketing | $5,000 |
| Sales Team Salaries | $20,000 |
| Marketing Tools & Software | $2,000 |
| Events & Sponsorships | $3,000 |
| Total Acquisition Costs | $45,000 |
Calculation: Sum all acquisition expenses = $45,000
Step 2: Calculate Blended CAC
Determine average cost per customer:
| Metric | Value |
|---|---|
| Total Acquisition Costs | $45,000 |
| New Customers Acquired | 150 |
| Blended CAC | $300 |
Calculation: $45,000 ÷ 150 = $300 per customer
Step 3: Evaluate CAC Health Metrics
Assess acquisition efficiency:
| Metric | Calculation | Result | Target |
|---|---|---|---|
| CAC | $45,000 ÷ 150 | $300 | – |
| Customer LTV | Avg revenue × margin × lifespan | $1,200 | – |
| LTV:CAC Ratio | $1,200 ÷ $300 | 4:1 | 3:1+ |
| Payback Period | $300 ÷ $50/mo profit | 6 months | <12 mo |
Final Answer: CAC is $300 with healthy 4:1 LTV ratio
What This Means
A 4:1 LTV:CAC ratio indicates healthy unit economics—you earn $4 for every $1 spent acquiring customers. Ratios below 3:1 signal unsustainable growth, while above 6:1 suggests underinvestment in growth opportunities.
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