Customer Acquisition Cost (CAC) Calculator
Find your cost to acquire a customer, and how it compares to lifetime value.
The 3:1 rule
Customer Acquisition Cost is what you spend (sales + marketing) divided by customers gained. Paired with lifetime value (LTV — estimate it with the MRR/ARR tool), the LTV:CAC ratio tells you if growth is profitable. A ratio around 3:1 is a common healthy target; below 1:1 you lose money on every customer.
Frequently asked questions
What should CAC include?
All sales and marketing costs for the period — ad spend, tools, and any sales labor — divided by the customers those efforts won.