.5f521cec.png)
CAC Calculator
Work out what a new customer costs you, and whether they pay that back.
Your numbers
$
$
$
%
Starting values are examples. Replace them with your own figures.
Results
Customer acquisition cost (CAC)
$88
(Marketing spend + sales costs) ÷ new customers
Lifetime value (margin-adjusted)
$120
LTV : CAC
1.37x
Orders to pay back CAC
1.8
Gross profit on a first order
$48
The formulas
- CAC = (marketing spend + sales costs) ÷ new customers
- LTV = average order value × orders per customer × gross margin
- Orders to pay back CAC = CAC ÷ gross profit per order
How to read the result
Count only customers who were new in the period, and use the same period for spend and customers. LTV:CAC above 1 means a customer earns back what they cost over their lifetime, but how fast matters too, which is what the payback figure shows.
Orders per customer over a lifetime is an estimate. Use your own repeat-purchase data rather than a guess.