Free calculator

CAC Calculator

Add media spend, tools, salaries and new customers. You get your CAC, your CAC with salaries included, your LTV:CAC ratio and how many months it takes to pay back.

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Short answer

CAC Calculator: what it does

Customer acquisition cost is everything you spend to get one new customer, divided by the number you got. Include salaries and tools or you'll think you're profitable when you're not. A healthy business usually wants at least a 3:1 ratio of lifetime value to CAC.

Last updated 3 August 2026

Worked example

Here's one we ran earlier.

£1,500 media · £200 tools · £2,500 salary · 30 customers · £600 LTV · £29/month per customer

Media CAC — £50
Channel-only
£1,500 media spend ÷ 30 customers. This is what you paid the platform for each new customer, before any team or tool costs.
Fully-loaded CAC — £140
True cost
£4,200 total acquisition spend ÷ 30 customers. This is the real cost when you include the person and tools doing the work.
LTV:CAC ratio — 4.3:1
Healthy
£600 lifetime value ÷ £140 fully-loaded CAC. A healthy ratio, but the payback period is 4.8 months — fine if cash flow can handle it.

How it works

Three steps, no account.

Step 1

Separate media from loaded costs

Media CAC tells you if a channel is efficient. Fully-loaded CAC tells you if the business is profitable. Track both, but don't make channel decisions with the loaded number.

Step 2

Use lifetime value, not first purchase

A customer who pays £29 a month for two years is worth £696, not £29. Comparing that to CAC changes which channels look affordable.

Step 3

Watch the payback period

A 3:1 LTV:CAC ratio sounds healthy, but if it takes twelve months to pay back, cash flow can still kill you. Under six months is usually safe for small businesses.

Questions

Common questions.

What's the difference between CAC and CPA?

CAC is what you spend to get one paying customer. CPA is what you spend to get one lead, trial, or action. CAC is the number that matters for profitability.

Should I include founder time?

For a true business view, yes. If you don't pay yourself yet, estimate the market rate for the time you spend on acquisition and add it. The number will look worse, but it's the number you need to replace yourself with a hire.

What is a good LTV:CAC ratio?

3:1 or better is the standard benchmark. Below 1:1 you lose money on every customer. Between 1:1 and 3:1 you can survive if payback is short and cash is strong, but growth will be expensive.

How do I improve CAC?

Improve conversion rate, raise price or lifetime value, cut spend on channels that don't convert, and focus on word of mouth. The fastest wins usually come from converting the traffic you already have.

Does this include salaries?

It can. The calculator shows both media-only CAC and fully-loaded CAC including salaries and tools. Use media CAC for channel decisions, fully-loaded CAC for business decisions.

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