CAC & LTV Calculator
Enter acquisition costs and customers to calculate CAC, compare to LTV, and estimate payback period.
Enter Your Costs
Include marketing and sales costs for the period.
Set costs and a number of customers greater than 0 to compute CAC and ratios.
What is CAC?
Customer Acquisition Cost (CAC) is the average cost to acquire a single paying customer during a specific period. It includes marketing and sales overhead related to acquiring customers.
How to Calculate
Add up all acquisition-related costs (marketing + sales/overhead) and divide by the number of new customers acquired.
Formulas
Total Acquisition Cost = Marketing + Sales & Overhead
CAC = Total Acquisition Cost ÷ Number of New Customers
LTV:CAC Ratio = LTV ÷ CAC
Payback Period (months) = CAC ÷ Average Monthly Revenue per Customer
Real-World Example
If you spend $25,000 on marketing and $5,000 on sales to acquire 500 customers, Total = $30,000 and CAC = $60 per customer (30,000 ÷ 500 = 60).
Why It Matters
Knowing CAC helps you judge channel efficiency, set realistic marketing budgets, and compare against LTV to ensure your acquisition strategy is sustainable.