Customer acquisition cost (CAC) is your total sales and marketing spend divided by the number of new customers it acquired.
What is the Customer Acquisition Cost Calculator?
This free CAC calculator shows your customer acquisition cost, how long it takes to earn it back, and your LTV:CAC ratio. These unit economics decide whether you can scale paid acquisition profitably or need to fix retention and margin first.
How this calculator works
Enter the marketing spend for a period and the new customers it produced to get CAC. Add your average order value, gross margin, and orders per year, and the tool works out gross profit per order, monthly profit per customer, the payback period, and a one-year LTV:CAC ratio.
How to read your result
The headline is your CAC. The rows show gross profit per order, payback period in months, your LTV:CAC ratio, and a quick verdict. Aim for a ratio of at least 3:1 and a payback under roughly a year; if you are below that, lift LTV or reduce acquisition cost.
Work with a Shopify expert
If your payback is too long, conversion and retention work improves the maths quickly. Talk to a growth expert.
This free customer acquisition cost calculator gives a fast, data-informed estimate; for wider industry context on customer acquisition cost, see Investopedia on customer acquisition cost.
CAC = marketing spend / new customers acquiredFactors
Marketing spend
All sales and marketing costs for the period, not just ad spend.
New customers
Only genuinely new customers acquired by that spend.
Gross margin
Determines the profit each order contributes toward earning back CAC.
Order frequency
More repeat orders shorten payback and raise the LTV:CAC ratio.
- Free and instant - no sign-up required.
- Built for Shopify and ecommerce stores.
- Use real numbers to plan with confidence.
- Turn the result into action with CartCoders.
Related calculators
Planning a project usually means weighing more than one number. These tools cover the decisions next to this one:
- Customer Lifetime Value Calculator — what a customer is worth
- ROAS Calculator — ad spend efficiency
- Email & SMS ROI Calculator — owned-channel revenue
Frequently asked questions
How do I calculate CAC?
Divide your total sales and marketing spend for a period by the number of new customers it acquired. This calculator also estimates payback period and your LTV:CAC ratio.
What is a good CAC payback period?
Under about twelve months is healthy for most ecommerce brands, and faster is better because it recycles cash into more growth. Subscription and high-repeat businesses can tolerate longer paybacks.
How do I reduce CAC?
Improve conversion rate so more visitors become customers, sharpen targeting and creative, and lean on owned channels like email, SMS, and referrals that cost less than paid media.