Quick answer
The Customer Acquisition Cost Calculator shows cost to win each new customer, and how it compares with their lifetime value. How it works: CAC = marketing and sales spend ÷ new customers; LTV : CAC = lifetime value ÷ CAC. For example, with marketing and sales spend of $5000, new customers of 125, and customer lifetime value of $180, the cAC is $40.00.
How to use the Customer Acquisition Cost Calculator
- Enter marketing and sales spend.
- Enter new customers.
- Enter customer lifetime value.
- Read cAC and the breakdown. Use Share to send the exact numbers, or Print to save a PDF.
How it's calculated
- CAC = marketing and sales spend ÷ new customers
- LTV : CAC = lifetime value ÷ CAC
Worked example
With marketing and sales spend of $5000, new customers of 125, and customer lifetime value of $180:
CAC: $40.00. LTV : CAC: 4.5 : 1.
Questions people ask
What's a healthy LTV to CAC ratio?
Many businesses aim for 3:1 or better. Below 1:1 means you lose money on each new customer.