How to Use CAC Calculator
The CAC Calculator measures the average cost to acquire a new customer. Enter acquisition cost categories such as ad spend, marketing staff cost, sales team cost, software cost, agency cost, and other cost. Then enter new customers, average monthly revenue per customer, gross margin, and expected customer lifetime.
The CAC Calculator returns CAC, total acquisition cost, CAC payback period, LTV to CAC ratio, and cost share. It is designed for SaaS, ecommerce, agencies, subscription businesses, and growth teams comparing channels.
Formula & Theory — CAC Calculator
The CAC Calculator uses these formulas:
CAC = Total Acquisition Cost / New Customers
CAC Payback Period = CAC / Monthly Gross Profit per Customer
LTV to CAC Ratio = Estimated LTV / CAC
| Symbol | Meaning |
|---|---|
| Total Acquisition Cost | Marketing, sales, tool, agency, and related acquisition costs |
| New Customers | Customers acquired in the period |
| CAC | Average cost to acquire one customer |
The CAC Calculator separates cost categories because acquisition costs often include more than ads. Sales compensation, tools, contractors, and campaign production can materially change the result.
Use Cases for CAC Calculator
The CAC Calculator is useful for:
- Growth channel comparison — Compare CAC across paid search, social, partners, and outbound sales.
- SaaS unit economics — Review payback period and LTV to CAC ratio.
- Budget allocation — Decide where incremental acquisition spend should go.
- Investor reporting — Explain acquisition efficiency with consistent assumptions.
The CAC Calculator helps teams evaluate whether growth is efficient, scalable, and supported by customer value.