Tools
CAC calculator: calculate your customer acquisition cost
Customer acquisition cost shows what a new customer costs you. Only in relation to customer lifetime value does it become a steering metric – the calculator assesses both.
Your CAC
Contribution margin a customer delivers over the entire relationship.
CAC
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- LTV:CAC
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Fill in the fields – the result appears instantly.
Your CAC is –. Add your LTV to see whether this price per new customer pays off long-term.
LTV:CAC below 1 – you pay more for new customers than they'll ever return. Stop scaling and fix margin, AOV or repeat-purchase rate first.
An LTV:CAC of – is tight: little buffer remains after fixed costs. Lower your CAC (creatives, targeting) or raise LTV (retention, AOV) before scaling aggressively.
An LTV:CAC of – is healthy – your growth finances itself. Now it pays to scale acquisition systematically.
LTV:CAC above 5 sounds comfortable – but often signals overly timid acquisition. You're probably leaving profitable growth on the table.
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Formula & example
The CAC formula
Costs and new customers must come from the same period:
CAC = marketing costs ÷ new customers won · ratio = LTV ÷ CAC
Example
- €10,000 marketing costs ÷ 100 new customers = CAC €100
- €300 LTV ÷ €100 CAC = 3.0 – healthy ratio, scaling approved.
Next step in the funnel
All metrics in place – now plan the budget.
The ad budget planner translates your revenue goal and target MER into the required monthly budget – the basis of every scaling decision.
Related content
FAQ
Frequently asked questions
Do repeat-customer orders count in the CAC calculation?
No – CAC refers to new customers only. Counting orders instead of new customers artificially flatters your CAC. Measure first-time buyers in the period, e.g. via your shop backend.
What if I don't know my LTV yet?
Start with a conservative approximation: average contribution margin per order × average orders per customer in 12 months. Even a rough number makes the LTV:CAC ratio steerable.
Why isn't CAC alone enough for budget steering?
A €100 CAC is a bargain at €300 LTV and ruinous at €80 LTV. Only the ratio makes it interpretable – which is why the calculator shows both together.