Client Acquisition Cost Calculator

Calculate your CAC, LTV, and LTV:CAC ratio.

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CAC & LTV

Enter your marketing costs and customer metrics.

LTV:CAC ratio
0.0x
CAC: $0
Customer acquisition cost
$0
Customer lifetime value
$0
LTV:CAC ratio
0.0x
CAC payback period (months)
0
Gross margin per customer
$0/mo
Revenue per customer
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Total marketing spend ($/mo)20000
Sales team cost ($/mo)15000
New customers per month50
Average revenue per customer ($/mo)100
Average customer lifespan (months)24
ResultValue
LTV:CAC ratio3.4x
Customer acquisition cost$700
Customer lifetime value$2,400
CAC payback period (months)7 mo
Gross margin per customer$100/mo
Revenue per customer$2,400

Values shown are produced by this page in your browser; change any input to update them.

How to use the CAC & LTV

  1. Total marketing spend ($/mo) — default 20000
  2. Sales team cost ($/mo) — default 15000
  3. New customers per month — default 50
  4. Average revenue per customer ($/mo) — default 100
  5. Average customer lifespan (months) — default 24
  6. Press Calculate to update the results instantly.

Frequently asked questions

Aim for 3:1 or better. If you spend $300 to win a client worth $900 over their lifetime, growth is sustainable; below 1:1 you lose money on every customer.
All sales and marketing spend divided by new customers won: ad spend, salaries of sales and marketing staff, tools, agency fees and discounts used to close.
Improve conversion before spending more: better landing pages, faster follow-up, referral programmes and content that attracts inbound leads.

Sources & references