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Customer acquisition cost (CAC) calculator

CAC = total sales and marketing spend ÷ new customers acquired in the same period. Spend $10,000 to win 200 customers and your CAC is $50. CAC is only healthy relative to lifetime value: aim for an LTV:CAC ratio of at least 3:1.

Customer acquisition cost

CAC

$50

$10,000 ÷ 200 customers

CAC = total sales and marketing spend ÷ new customers in the same period. CAC is only “good” relative to lifetime value — aim for an LTV:CAC ratio of at least 3:1.

What to include in CAC

Include every cost tied to winning new customers: paid ads, agency or freelancer fees, marketing software, and acquisition promotions. Exclude the cost of retaining existing customers; that belongs to retention, not acquisition. A blended CAC across all channels is the simplest place to start; channel-level CAC tells you where to scale.

Frequently asked questions

How do I calculate customer acquisition cost?

CAC = total sales and marketing spend ÷ new customers acquired in the same period. Spend $10,000 to win 200 customers and your CAC is $50. Include ad spend plus any acquisition overhead for an honest figure.

What is a good customer acquisition cost?

CAC is only good relative to lifetime value — aim for an LTV:CAC ratio of at least 3:1. A $50 CAC is healthy if each customer is worth $150 or more in lifetime profit, and unsustainable if they're worth $60.

What costs should be included in CAC?

Include all sales and marketing costs tied to winning new customers: paid ads, agency or freelancer fees, marketing software, and acquisition promotions. Exclude the cost of retaining existing customers, which belongs to retention rather than acquisition.

Related tools & terms

Does each customer pay off?

Compare CAC against lifetime value to see whether your acquisition is profitable.

Check LTV:CAC

See our methodology for how TrustProfit verifies revenue and estimates valuations.