CAC & LTV Calculator

Enter acquisition costs and customers to calculate CAC, compare to LTV, and estimate payback period.

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Enter Your Costs

Include marketing and sales costs for the period.

Customer Acquisition Cost (CAC)
Cost to acquire each customer
LTV:CAC Ratio
Enter LTV for ratio
CAC Payback Period
Time to recover acquisition cost
Acquisition Cost Breakdown
Marketing
Sales & Overhead
Total

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.