CAC Calculator
CAC, or customer acquisition cost, is the fully loaded cost of acquiring one new customer. It is the metric that connects marketing efficiency to business viability, because a brand only grows profitably when the cost to win a customer stays comfortably below the value that customer delivers. This free CAC calculator divides your acquisition costs by new customers won, and it requires no email.
Enter your numbers to see results.
The calculator also accepts lifetime value so it can return your LTV to CAC ratio, the single number investors and operators use to judge whether a growth engine is healthy. Enter media spend, any other acquisition costs, customers acquired, and optionally LTV to see both figures at once.
Use it to evaluate channel efficiency, set spend guardrails, or check whether your unit economics still support faster growth.
How it works
CAC equals total acquisition cost divided by the number of new customers acquired in the same period. The numerator should be fully loaded: media spend plus any other costs tied to acquisition, such as agency fees, tools, and the sales effort attributable to winning customers.
The LTV to CAC ratio divides customer lifetime value by CAC. A ratio of 3:1 is a common starting heuristic for a healthy consumer business, meaning a customer returns three dollars of lifetime value for every dollar spent acquiring them.
Worked example
Suppose a brand spends $9,000 in media plus $1,000 in other acquisition costs, for $10,000 total, and acquires 200 new customers. CAC is 10,000 divided by 200, or $50.
If customer lifetime value is $150, the LTV to CAC ratio is 150 divided by 50, or 3.0. That is a healthy 3:1 starting point, with room to spend more aggressively if the payback window supports it.
What is a good CAC?
A good CAC is one that sits well below the value of the customer it buys, so it cannot be judged in isolation. The most common heuristic is an LTV to CAC ratio of 3:1, which signals a business that is neither under-investing nor overpaying for growth. A ratio far above 3:1 often means you are under-spending and leaving growth on the table; a ratio below it means acquisition is eating into the margin that should fund the business.
Context drives everything. The most frequent mistake is using a CAC that is not fully loaded: counting only media spend while ignoring agency fees, tools, creative production, and sales costs. That understates true CAC and makes channels look more efficient than they are. A fully loaded CAC is the only honest one.
Distinguish blended, paid, and marginal CAC. Blended CAC includes organic and word-of-mouth customers, so it flatters paid performance. Paid CAC isolates customers won through advertising. Marginal CAC, the cost of the next customer as you scale, is what matters most for spend decisions, because acquisition gets more expensive as you exhaust your best audiences. Compare your figures against QRY's monthly paid media benchmarks to judge whether your CAC is healthy for your vertical.
See QRY's monthly paid media benchmarks to compare your numbers against the portfolio.
Frequently asked questions
What is a good CAC?
A good CAC is one that keeps your LTV to CAC ratio at roughly 3:1 or better, meaning a customer returns at least three dollars of lifetime value per dollar spent acquiring them. The absolute number matters less than its relationship to customer value, margin, and payback window, which vary widely by business.
How do you calculate CAC?
CAC equals total acquisition cost divided by new customers acquired in the same period. Include media spend plus other acquisition costs such as agency fees, tools, and attributable sales effort. For example, $10,000 in total cost across 200 new customers is a $50 CAC.
What is the difference between CAC and CPA?
CAC measures the cost to acquire a paying customer, while CPA measures the cost of any defined conversion, which may be a lead, signup, or first action rather than a customer. CAC is always about a customer and is usually fully loaded; CPA is often a narrower, channel-level efficiency metric.
What is a good LTV to CAC ratio?
A 3:1 LTV to CAC ratio is the common starting heuristic for a healthy consumer business. A ratio well above 3:1 can signal under-investment in growth, and a ratio below it signals that acquisition is consuming too much margin. The right target depends on margin, payback window, and growth stage.
What is the difference between blended, paid, and marginal CAC?
Blended CAC divides total acquisition cost by all new customers, including organic ones, which flatters paid performance. Paid CAC counts only customers won through advertising. Marginal CAC is the cost of the next customer as you scale, and it rises as you exhaust your best audiences, so it is the most important figure for spend decisions.
Related calculators
Is your CAC sustainable as you scale?
See how your acquisition costs compare to QRY's managed portfolio with our monthly paid media benchmarks.
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