CAC Calculator: calculate cac for your business. Formula, benchmarks, and practical tips included.
CAC = Total sales and marketing costs ÷ New customers acquired
CAC payback period = CAC ÷ Monthly gross margin per customer
Worked example: Monthly sales and marketing costs: 150,000. New customers acquired: 300. CAC = 500. Monthly gross margin per customer: 80 (subscription 120 × 67% gross margin). CAC payback = 500/80 = 6.25 months. LTV at 24-month average customer life: 80 × 24 = 1,920. LTV:CAC = 1,920/500 = 3.84× — healthy unit economics.