CAC Calculator
CAC is what your business spends, on average, to win each new customer. Set against LTV, it tells you whether growth pays for itself. Enter the spend and the customers it brought in.
Your numbers
Result
- LTV / CAC ratioaim for ≥ 3
- 0
| Item | Value |
|---|---|
| Spend (marketing + sales) | $10,000.00 |
| New customers | 50 |
| CAC (cost per customer) | $200.00 |
| LTV / CAC ratio | — |
How to calculate CAC
Divide all marketing and sales spend by the number of new customers in the same period: CAC = spend ÷ new customers. Spending $10,000 to win 50 customers is a CAC of $200 each. Count everything that goes into acquisition — ad spend, salaries, tools and commissions.
The LTV/CAC ratio
CAC only means something next to LTV (what a customer is worth over their lifetime). The rule of thumb is LTV/CAC ≥ 3: every dollar spent acquiring a customer should return at least three across the relationship. Below that, growth may not pay for itself; far above it, you might be under-investing in acquisition.
Frequently asked questions
Sources
- SaaS / growth metrics — CAC and LTV
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