What does a new customer really cost?
Understand what it really costs to win a new customer, beyond your ad spend. Compare blended CAC to contribution profit from each new customer. Lifetime value should use a consistent period and ideally contribution profit rather than revenue. Revenue-based LTV can overstate acquisition headroom.
The formula, explained.
Paid CAC = advertising spend ÷ new paid customers Blended CAC = all acquisition costs ÷ all new customers LTV:CAC = lifetime value ÷ blended CAC
A worked example
How to interpret your result
Compare blended CAC to contribution profit from each new customer. Lifetime value should use a consistent period and ideally contribution profit rather than revenue. Revenue-based LTV can overstate acquisition headroom.
Common mistakes to avoid
Counting repeat customers in the denominator understates CAC. Paid and blended CAC need different customer counts when organic channels bring in customers.
Frequently asked questions
What does this result include?
The result includes the inputs shown above and any advanced costs you enter. Fixed overhead and income taxes are excluded unless explicitly allocated in other costs. Check the formula and cost breakdown for the exact scope.
Can I change the assumptions?
Yes. All inputs can be edited, and advanced assumptions are available below the main inputs. Use values from the same period and currency. Changing display currency changes the symbol, not the underlying amount.
Are my financial numbers saved?
No. Calculations happen locally in your browser. Sharing creates a link containing the inputs, and exporting saves a CSV report to your device. You choose whether to share those artifacts.
Learn more about our calculation methodology and estimate limitations.