Customer acquisition cost, lifetime value, ratio, and payback period. Runs in your browser; nothing you type is sent anywhere.

Total acquisition spend ($)New customersAverage order value ($)Gross margin (%)Orders per customer per yearCustomer lifetime (years)

Formula

CAC equals total sales and marketing cost in a period divided by new customers acquired in that period. $120,000 of spend, salaries, and tools producing 800 new customers is a $150 CAC. Paid CAC uses media spend only; fully loaded CAC includes people and tools.

CAC is compared to lifetime value; a ratio of 3:1 or better is the common rule of thumb, and payback period (CAC divided by monthly contribution per customer) matters more for cash-constrained businesses. CAC by channel requires an attribution decision; blended CAC does not.

Typical ranges are on the benchmarks pages; definitions in the glossary.