Customer acquisition cost calculator

The CAC calculation is: (Cost of sales + cost of marketing) / # of new customers. Use our calculator to arrive at the final number.

Read the full methodology

The right CAC varies widely depending on your industry. But as a rule of thumb, you should compare your CAC value to your customer lifetime value (LTV). A good CAC should be just a fraction of a customer’s LTV. Aim for a CAC that amounts to about 1/3 or 1/4 your LTV.

Divide customer LTV by CAC. That’s your LTV: CAC ratio. This ratio signals how much you’re making from your customers over the course of their engagement with your brand compared to how much you’re spending to win them.

A quick example of customer acquisition cost: say your company spends $20,000 in a given month to win new customers. During this period, new customers made over 2,000 purchases. Your CAC would be $10.