Customer Acquisition Cost Calculator
Add up everything it costs to win a customer and compare it with what they're worth over time, including your LTV to CAC ratio and payback period.
How to Use the Customer Acquisition Cost Calculator
- Enter this month's ad spend, agency fees, software and the share of staff time spent winning customers.
- Add how many new customers you won.
- Fill in monthly revenue per customer, gross margin and how long customers stay.
Count the Whole Cost
Most businesses only divide ad spend by new customers, which makes acquisition look cheaper than it is. Agency fees, software, the hours your team spends on sales calls and quotes all go into winning customers. We show both numbers so you can see the gap.
Lifetime value here is gross profit, not revenue: monthly revenue per customer times your margin times how many months they stay.
Reading the Ratio
A lifetime value of 3 times your acquisition cost or more usually means there's room to spend more on growth. Below 1, each new customer loses money. Payback period tells you how long cash is tied up. A 12 month payback can still be fine for a business with steady repeat customers, but it strains cash flow if you're growing fast.
Frequently Asked Questions
Should I use monthly or yearly numbers?
Either, as long as spend and new customers cover the same period. Monthly works well for most local businesses.
What if customers buy once?
Set months to 1 and use the profit from a single purchase as revenue per customer. The break-even ROAS calculator suits 1 time purchases too.
What's a good LTV to CAC ratio?
3 to 1 is a common benchmark. Higher means you may be underspending on growth.
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