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E-commerce Calculators

Customer Acquisition Cost Calculator

Customer acquisition cost (CAC) is what you spend on marketing and sales to win one new customer. Add order value, repeat purchases and margin to compare it with what each customer is worth.

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Customer value (optional)

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Customer acquisition cost$30.00

Customers are profitable over their lifetime, but with a thin cushion.

Total acquisition spend
$10,500.00
Customer lifetime value (gross profit)
$72.00
LTV : CAC
2.4 : 1
Orders to pay back CAC
1.25
Step-by-step working
  1. CAC = ($8,000.00 + $2,000.00 + $500.00) ÷ 350 = $30.00
  2. LTV = $60.00 × 3 orders × 40% = $72.00
  3. LTV : CAC = 2.4

How to use the Customer Acquisition Cost Calculator

  1. Enter marketing, sales and other acquisition costs for a period.
  2. Enter the number of new customers won in that period.
  3. Optionally add order value, lifetime orders and margin to see LTV:CAC.
  4. Press Calculate.

Formula

CAC = (marketing + sales + other acquisition costs) ÷ new customers

LTV = average order value × orders per customer × gross margin

A common rule of thumb is an LTV:CAC of around 3:1 or better.

Examples

  • 10,500 spend for 350 customers: CAC = 30. With a 60 order value, 3 orders and 40% margin, LTV = 72 and LTV:CAC = 2.4 : 1.

Frequently asked questions

Should I include existing customers?

No. CAC counts only new customers won in the period, so returning customers do not lower it artificially.

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