Customer Acquisition Cost (CAC) Calculator

Calculate CAC, LTV, and LTV:CAC ratio. See if your customer economics are healthy.

By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide

$
$
Time Period

CAC

$300.00

LTV

$2,400.00

LTV:CAC Ratio

8.0:1

Acquisition Metrics

Marketing Spend$10,000.00
Sales Spend$5,000.00
Total Spend$15,000.00
New Customers50
CAC (monthly)$300.00
Customer LTV$2,400.00
LTV:CAC Ratio8.0:1
Payback Period3.0 months
HealthHealthy (3:1+)

Use the Customer Acquisition Cost (CAC) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Customer Acquisition Cost (CAC) measures what it actually takes to win a new customer, and pairing it with lifetime value (LTV) and the LTV:CAC ratio shows whether that spending pays off. These numbers anchor decisions about sustainable growth and profitability, particularly as acquisition channels keep shifting through 2026.

CAC comes from dividing your total marketing and sales spend over a period by the number of new customers won in that same period. LTV multiplies average customer revenue per period by average customer lifespan and then subtracts the cost of goods sold. Dividing LTV by CAC gives the LTV:CAC ratio.

Counting only advertising spend understates CAC, so fold in salaries, software, agency fees, and other costs tied to acquisition. Lifespan assumptions trip people up too, since an inflated customer lifespan inflates LTV along with it. A ratio of 3:1 or higher generally signals healthy unit economics.

Example: 2026 SaaS Startup

  1. 1 Input your data. Let's say in Q1 2026, your SaaS startup spent $50,000 on marketing and sales, acquired 200 new customers, and each customer generates an average of $150/month with a 24-month lifespan and 20% COGS.
  2. 2 The calculator performs the calculations: CAC = $50,000 / 200 = $250. LTV = ($150/month * 24 months) * (1 - 0.20 COGS) = $2,880. LTV:CAC Ratio = $2,880 / $250 = 11.52.
  3. 3 Your CAC is $250, your LTV is $2,880, and your LTV:CAC ratio is 11.52:1.
  4. 4 This indicates exceptionally strong customer economics, suggesting you can scale your marketing efforts aggressively. A ratio over 3:1 is generally considered excellent, so an 11.52:1 ratio highlights a highly profitable customer base.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

How do I calculate Customer Acquisition Cost?
CAC = Total Sales and Marketing Costs / Number of New Customers Acquired. Include all related expenses: ad spend, salaries, tools, agencies, and content creation. If you spent $50,000 and acquired 200 customers, CAC is $250.
What is a good LTV to CAC ratio?
An LTV:CAC ratio of 3:1 or higher is generally considered healthy, meaning each customer generates 3x or more the cost to acquire them. Below 1:1 means you are losing money on every customer; above 5:1 may indicate under-investment in growth.
How can I reduce my Customer Acquisition Cost?
Improve conversion rates (better landing pages, targeting), invest in organic channels (SEO, referrals, content marketing), increase customer referrals, optimize ad targeting and bidding, and improve sales team efficiency through better qualification.

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