AlusLabs

AlusLabs

CAC Calculator

Calculate customer acquisition cost, payback period, and LTV:CAC ratio. Instant results as you type.

Optional inputs

Used for payback and LTV:CAC ratio.

Results

CAC

$500

Total spend

$15,000

Payback period

5.1 months

LTV:CAC ratio

4.0:1

Tip: share this calculator by copying the URL—your inputs are saved in the query string.

The CAC calculator measures how much it costs your business to acquire a single new customer. Customer acquisition cost is calculated by dividing your total sales and marketing spend by the number of new customers gained in the same period. For SaaS companies, a CAC payback period under 12 months is considered healthy, while e-commerce businesses typically aim for first-order profitability. This tool also calculates your LTV:CAC ratio — the single most important metric for evaluating whether your growth model is sustainable. If your CAC is higher than your LTV, you're losing money on every customer you acquire.

How to calculate CAC

Formula: CAC = (Sales Spend + Marketing Spend) ÷ New Customers Payback (months) = CAC ÷ Average Monthly Revenue per Customer LTV:CAC = LTV ÷ CAC

FAQ

How do you calculate CAC?expand_more
CAC = (Sales Spend + Marketing Spend) ÷ New Customers Acquired in the same period.
What is a good CAC payback period?expand_more
For many B2B SaaS businesses, a CAC payback period under 12 months is considered healthy. It varies by pricing and gross margin.
What is a good LTV:CAC ratio?expand_more
3:1 or higher is generally considered healthy. Below that may indicate inefficient acquisition.
Should I include salaries in CAC?expand_more
Typically yes—include fully loaded sales and marketing costs (salaries, tools, agency fees) for a realistic blended CAC.
How can I reduce CAC?expand_more
Improve conversion rates, increase brand-driven demand, tighten targeting, and automate sales ops and lead follow-up to waste less spend.

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Need help implementing automation?

If these numbers look meaningful, we can help you automate the underlying workflows—so you capture the savings.

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