Customer Acquisition Cost (CAC) Calculator

Calculate CAC, LTV, and LTV:CAC ratio. See if your customer economics are healthy.
$
$
Time Period

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 Customers50
CAC (monthly)$300.00
Customer LTV$2,400.00
LTV:CAC Ratio8.0:1
Payback Period3.0 months
HealthHealthy (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

Our Customer Acquisition Cost (CAC) Calculator helps you understand the true cost of acquiring a new customer, their lifetime value (LTV), and the vital LTV:CAC ratio. This insight is crucial for sustainable growth and profitability, especially as marketing channels evolve in 2026.

The calculator uses your total marketing and sales expenditure over a period, divided by the number of new customers acquired in that same period, to determine CAC. LTV is calculated by multiplying average customer revenue per period by average customer lifespan, minus the cost of goods sold. The LTV:CAC ratio is simply LTV divided by CAC.

Ensure you include all relevant costs, not just advertising spend, when calculating CAC (e.g., salaries, software, agency fees). A common mistake is using an unrealistic customer lifespan for LTV. Aim for an LTV:CAC ratio of 3:1 or higher for healthy unit economics.

Example: 2026 SaaS Startup

  1. 1 Input your data. Let's say in Q1 2026, your SaaS startup spent $50,000 on marketing and sales, acquired 200 new customers, and each customer generates an average of $150/month with a 24-month lifespan and 20% COGS.
  2. 2 The calculator performs the calculations: CAC = $50,000 / 200 = $250. LTV = ($150/month * 24 months) * (1 - 0.20 COGS) = $2,880. LTV:CAC Ratio = $2,880 / $250 = 11.52.
  3. 3 Your CAC is $250, your LTV is $2,880, and your LTV:CAC ratio is 11.52:1.
  4. 4 This indicates exceptionally strong customer economics, suggesting you can scale your marketing efforts aggressively. A ratio over 3:1 is generally considered excellent, so an 11.52:1 ratio highlights a highly profitable customer base.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

How do I calculate Customer Acquisition Cost?
CAC = Total Sales and Marketing Costs / Number of New Customers Acquired. Include all related expenses: ad spend, salaries, tools, agencies, and content creation. If you spent $50,000 and acquired 200 customers, CAC is $250.
What is a good LTV to CAC ratio?
An LTV:CAC ratio of 3:1 or higher is generally considered healthy, meaning each customer generates 3x or more the cost to acquire them. Below 1:1 means you are losing money on every customer; above 5:1 may indicate under-investment in growth.
How can I reduce my Customer Acquisition Cost?
Improve conversion rates (better landing pages, targeting), invest in organic channels (SEO, referrals, content marketing), increase customer referrals, optimize ad targeting and bidding, and improve sales team efficiency through better qualification.

You might also need

Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments

Calculate SE tax, quarterly estimated payments, and total tax burden for freelancers and 1099 contractors. Free, instant results based on 2026 IRS rates.

LLC vs S-Corp Tax Comparison Calculator

Compare tax liability as an LLC vs S-Corp. See how much you can save on self-employment tax with an S-Corp election.

W-2 vs 1099 Comparison Calculator

Compare take-home pay as a W-2 employee vs 1099 contractor. Find the equivalent 1099 rate to match your W-2 salary.