What is CAC?
Customer acquisition cost is the total marketing spend needed to win one new customer.
Customer acquisition cost (CAC) calculator
Compare what one new customer costs you with the contribution profit that customer leaves in a year.
Result
- Customer acquisition cost (CAC)
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- One-year customer value (contribution profit)
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- LTV to CAC ratio
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- Orders needed to pay back CAC
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This tool is a simple scenario calculation, not a forecast or a guarantee.
How is it calculated?
Formula
CAC = (ad spend + other marketing costs) ÷ new customers. One-year customer value = order value × gross margin × orders per year.
How to read LTV to CAC
A common rule of thumb is that customer value should be at least three times the acquisition cost. Below 1, every new customer loses money.
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