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Analytics

CAC Calculator

Calculate customer acquisition cost and LTV:CAC ratio.

Results

  • Customer Acquisition Cost (CAC)$300
  • LTV : CAC ratio4.00 : 1
  • Estimated payback period6.0 months
Verdict: Healthy โ€” LTV:CAC above 3:1.

About this tool

Enter your marketing and sales spend, the number of new customers acquired, and (optionally) average LTV. The calculator returns your Customer Acquisition Cost, LTV:CAC ratio, payback period, and a plain-English verdict.

What it does

  • โ€ขTrue CAC from marketing + sales spend
  • โ€ขLTV : CAC ratio with health verdict
  • โ€ขEstimated payback period
  • โ€ขWorks for SaaS, ecommerce, agencies

Use cases

  • โ˜…Measuring paid channel efficiency
  • โ˜…Benchmarking against 3:1 LTV:CAC rule
  • โ˜…Defending a marketing budget

FAQ

How is CAC calculated?

CAC = (marketing spend + sales spend) รท new customers acquired in the same period. Include salaries, ads, tools and agency fees.

What's a good LTV:CAC ratio?

3:1 is the SaaS rule of thumb. Below 1:1 you lose money; above 5:1 you may be under-investing in growth.