Customer Acquisition Cost (CAC) Calculator
Calculate CAC, LTV, and LTV:CAC ratio. See if your customer economics are healthy.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
CAC
$300.00
LTV
$2,400.00
LTV:CAC Ratio
8.0:1
Acquisition Metrics
| Marketing Spend | $10,000.00 |
| Sales Spend | $5,000.00 |
| Total Spend | $15,000.00 |
| New Customers | 50 |
| CAC (monthly) | $300.00 |
| Customer LTV | $2,400.00 |
| LTV:CAC Ratio | 8.0:1 |
| Payback Period | 3.0 months |
| Health | Healthy (3:1+) |
Use the Customer Acquisition Cost (CAC) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Customer Acquisition Cost (CAC) measures what it actually takes to win a new customer, and pairing it with lifetime value (LTV) and the LTV:CAC ratio shows whether that spending pays off. These numbers anchor decisions about sustainable growth and profitability.
CAC comes from dividing your total marketing and sales spend over a period by the number of new customers won in that same period. The calculator's LTV is revenue-based: average monthly revenue per customer times average customer lifetime in months, with no deduction for cost of goods sold. Dividing LTV by CAC gives the LTV:CAC ratio, and CAC divided by monthly revenue per customer gives the payback period in months. If your product carries real delivery costs, multiply LTV by your gross margin before comparing the ratio with the 3:1 benchmark.
Counting only advertising spend understates CAC, so fold in salaries, software, agency fees, and other costs tied to acquisition. Lifespan assumptions trip people up too, since an inflated customer lifespan inflates LTV along with it. A ratio of 3:1 or higher generally signals healthy unit economics.
Example: SaaS Startup
- 1 Input your data. Say that in one quarter your SaaS startup spent $50,000 on marketing and sales and acquired 200 new customers. Each customer pays an average of $150 a month and stays 24 months, and cost of goods sold runs 20% of revenue.
- 2 The calculator: CAC = $50,000 / 200 = $250. LTV = $150 × 24 = $3,600. LTV:CAC = $3,600 / $250 = 14.4:1, and the payback period is $250 / $150 = 1.7 months.
- 3 The calculator does not deduct COGS, so adjust by hand: LTV = $3,600 × (1 − 0.20) = $2,880, and LTV:CAC = $2,880 / $250 = 11.52:1.
- 4 Either way the ratio is far above 3:1, the usual threshold for healthy unit economics, so each customer returns many times what it cost to win. A ratio this high can also mean the company is under-investing in growth and could afford to spend more on acquisition.
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
How do I calculate Customer Acquisition Cost?
What is a good LTV to CAC ratio?
How can I reduce my Customer Acquisition Cost?
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