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Customer acquisition cost (CAC) calculator

CAC is what it costs to win one new customer. Enter your spend and new customers, and add lifetime value to see the ratio between them.

CAC$3,000
LTV to CAC ratio3x

The formula

CAC = sales and marketing spend ÷ new customers won in the same period.

How to use it

  • Use the same period for spend and customers. For long cycles, shift spend back by one cycle.
  • Include people costs, not only ad spend.
  • A common rule of thumb is an LTV to CAC ratio of 3 or more, but check it against your payback time too.

Frequently asked questions

What is CAC payback?

The months it takes for a customer's gross profit to repay what you spent to win them. Divide CAC by monthly gross profit per customer.

Should CAC include free trial users?

Count customers who paid. Trials that never convert are part of your cost, not a separate count.

Know who to call before you count.

Rodok finds the people showing a buying signal and keeps every deal in one CRM.