Customer Acquisition Cost Calculator
Calculate CAC, LTV, and LTV:CAC ratio from marketing and sales spend.
Inputs
Results
Customer Acquisition Cost
$300.00
≈ 5 tanks of gas
How to Use This Calculator
- Enter Monthly Marketing Spend and Monthly Sales Spend.
- Input New Customers per Month acquired in the period.
- Enter Average Order Value, Purchases per Year, and Average Customer Lifespan (years).
- Review Customer Acquisition Cost (CAC) and compare to Customer Lifetime Value (CLV).
- A healthy CLV:CAC ratio is 3:1 or higher — use this to set sustainable ad spend budgets.
How the result changes with New Customers / Month
| New Customers / Month | Customer Acquisition Cost |
|---|---|
| 10,001 | $1.50 |
| 35,001 | $0.43 |
| 65,000 | $0.23 |
| 90,000 | $0.17 |
What each input means
- Monthly Marketing Spend
- Total monthly marketing budget (ads, content, tools).
- Monthly Sales Spend
- Total monthly sales cost (salaries, commissions, tools).
- New Customers / Month
- Number of new customers acquired per month.
- Average Order Value
- Average revenue per order.
- Purchases Per Year
- Average number of purchases per customer per year.
- Customer Lifespan
- Average customer relationship duration in years.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersMonthly Marketing Spend = 10000, Monthly Sales Spend = 5000, New Customers / Month = 50, Average Order Value = 75 = 6 input(s) provided
- Calculate Customer Acquisition CostCustomer Acquisition Cost300 = $300
- Calculate Customer Lifetime ValueCustomer Lifetime Value900 = $900
- Calculate LTV:CAC RatioLTV:CAC Ratio3 = 3
Engine last updated . Checked against 1 independently-derived test — how we verify calculators.
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