Customer Acquisition Cost Calculator
Use your own numbers after reviewing the formula and worked example.
Quick answer
CAC usually focuses on new customers, CPA can represent a broader acquisition/action, and CLV estimates customer value over time.
Formula or method
Keep units, percentages and time periods consistent. The formula is useful as a transparent check on the calculator result and helps explain why changing one input changes the answer.
Step-by-step
- Define customer/acquisition.
- Match spend to the measured population.
- Calculate CAC or CPA.
- Compare cost with a consistently defined customer-value measure.
Worked example
If $20,000 of acquisition spend produces 400 new customers, CAC is $50.
How to interpret the result
Attribution and lifetime-value assumptions can have a large effect, so definitions should be explicit.
When the answer is used for a purchase, loan, payroll decision, construction order, school grade, health estimate or other real-world choice, verify the assumptions that matter in that context. Accurate arithmetic still depends on accurate inputs.
Common mistakes
- Calling every marketing cost CAC.
- Comparing revenue CLV with profit-based CAC economics.
- Assuming future retention is guaranteed.
Frequently asked questions
CAC same as CPA?
Not always.
Should CLV use revenue or profit?
Either can be modeled, but the definition must be clear.
Is there a universal CAC/CLV target?
No.