📊 CAC Calculator

Customer Acquisition Cost (CAC) Calculator

Calculate your Customer Acquisition Cost, LTV:CAC ratio, and payback period. The #1 metric VCs use to assess startup health and unit economics.

Sales & Marketing Spend

Monthly or annual period

💸 Total S&M Spend (same period)
$
$
$
$
$
💰 Customer Value (LTV Inputs)
$
%
Customer Acquisition Cost
$—
—
LTV:CAC Ratio
—
CAC
—
LTV
—
LTV:CAC
—
Payback Period
—
Total S&M Spend—
New Customers—
CAC—
Monthly ARPU × Gross Margin—
Customer Lifetime (months)—
LTV (ARPU × Margin × Lifetime)—
LTV:CAC Ratio—
CAC Payback Period—
Health Assessment—
📏 Benchmarks: LTV:CAC > 3:1 = Healthy | 1-3:1 = Risky | <1:1 = Losing money. Payback < 12mo = Excellent | 12-18mo = Good | >24mo = Concerning.

FAQ

What is CAC?
Customer Acquisition Cost (CAC) = Total Sales & Marketing spend / Number of new customers acquired in the same period. It measures how much it costs to acquire one new customer. Lower CAC is better.
What is a good LTV:CAC ratio?
3:1 or higher is considered healthy. 1:1 means you break even on each customer. <1:1 means you lose money on each customer acquired. SaaS companies often target 3:1 to 5:1. Very high ratios (>5:1) may indicate underinvestment in growth.
What is CAC payback period?
CAC Payback Period = CAC / (Monthly ARPU × Gross Margin). It shows how many months of revenue it takes to recoup the cost of acquiring a customer. Under 12 months is excellent; over 24 months is a warning sign.
How can I reduce CAC?
1) Optimize paid ad targeting and bidding. 2) Invest in SEO and content marketing (lower long-term CAC). 3) Implement referral programs (word-of-mouth is free). 4) Improve landing page conversion rates. 5) Build a stronger brand (organic traffic).