Customer Acquisition Cost (CAC) Calculator
Calculate your Customer Acquisition Cost (CAC) and compare it against Customer Lifetime Value (LTV) to evaluate marketing efficiency and business sustainability.
Fill in the fields above and click Calculate to see your results.
How to use
This free and easy-to-use tool helps businesses evaluate the overall efficiency of their marketing and sales efforts by accurately calculating the Customer Acquisition Cost (CAC) and comparing it against the Customer Lifetime Value (LTV).
Start by inputting your Total Marketing and Sales Spend for a specific period, which should include all related expenses such as digital ad spend, software subscriptions, agency fees, and sales team salaries. Next, enter the total number of New Customers Acquired during that exact same timeframe to ensure an accurate calculation.
The calculator will automatically combine your costs and divide them by the number of new customers, instantly outputting your CAC. A lower CAC generally indicates higher marketing efficiency, but it should always be analyzed alongside your LTV to ensure sustainable long-term business growth and profitability.
How it's calculated
Customer Acquisition Cost (CAC)
Average cost to acquire one new customer
Customer Lifetime Value (LTV)
Total profit generated by a customer over their lifetime
LTV : CAC Ratio
How much lifetime value you get per dollar of acquisition cost
CAC Payback Period
Months to recover the acquisition cost from a customer
Examples
E-commerce store monthly campaign
- New Customers Acquired:150
- Average Order Value:500,000
- Gross Margin:40
- Total Marketing & Sales Spend:30,000,000
- Average Customer Lifespan:3
- Average Purchases Per Year:4
Result
- Customer Acquisition Cost (CAC):500,000
- total_cost:50,000,000
Spending 30M VND on marketing and 20M VND on sales to acquire 100 new customers means you spent a total of 50M VND. Dividing this by 100 gives a CAC of 500,000 VND per customer.
B2B SaaS subscription model
- New Customers Acquired:50
- Average Order Value:2,000,000
- Gross Margin:60
- Total Marketing & Sales Spend:25,000,000
- Average Customer Lifespan:2
- Average Purchases Per Year:3
Result
- Customer Acquisition Cost (CAC):500,000
- Customer Lifetime Value (LTV):7,200,000
- LTV : CAC Ratio:14.4
For a B2B SaaS business spending 25M VND to acquire 50 customers, the CAC is 500,000 VND. With a high lifetime value of 7.2M VND, the LTV to CAC ratio is very strong.
Industry Benchmarks
| Metric | Typical Range |
|---|---|
| In Vietnamese e-commerce, CAC typically ranges from 150,000 to 500,000 VND depending on the product margin. | 500000 VND (E-commerce Avg) |
Data source: Vietnam Digital Marketing Industry Estimates
Frequently Asked Questions
What is a healthy LTV:CAC ratio?
What costs should I include in CAC?
What costs should I include in 'Marketing Spend'?
Is a high CAC always bad?
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