Customer acquisition cost calculator
See what a new customer costs you, whether the first order pays it back, and how many months it takes to earn it back if not.
Example numbers. Replace them with yours.
- Payback period
- 5.1 months
- CAC
- USD 25
- First-order profit after CAC
- USD 2
- Orders to pay back CAC
- 0.93
- LTV:CAC
- 4.75×
What it calculates
Customer acquisition cost (CAC) is marketing spend divided by the new customers it brought. If the first order's profit covers CAC, you make money from day one. If not, the payback period shows how many months of repeat orders it takes to earn the cost back. The longer the payback, the more cash you need to grow.
How to read the result
A negative first-order profit is normal for brands with strong repeat buying, as long as payback is shorter than customers stay. If payback is longer than your cash can wait, lower CAC or raise first-order value with bundles or upsells.
Learn the metric:CACBlended CACCustomer lifetime value (LTV)
The formula
CAC = Marketing spend ÷ new customers Profit per order = AOV × margin First-order profit = Profit per order − CAC Payback months = CAC ÷ (Profit per order × orders per year ÷ 12) LTV:CAC = Profit per order × orders per year × years ÷ CAC
Worked example
Example inputs
- Marketing spend
- USD 15,000
- New customers
- 600
- Average order value
- USD 60
- Margin
- 45%
- Orders per year
- 2.2
- Years as a customer
- 2
Results
- Payback period
- 5.1 months
- CAC
- USD 25
- First-order profit after CAC
- USD 2
- Orders to pay back CAC
- 0.93
- LTV:CAC
- 4.75×
What changes the result
Marketing spend at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Marketing spend | CAC | Payback period |
|---|---|---|
| USD 7,500 | USD 12.50 | 2.5 months |
| USD 11,250 | USD 18.75 | 3.8 months |
| USD 15,000 | USD 25 | 5.1 months |
| USD 18,750 | USD 31.25 | 6.3 months |
| USD 22,500 | USD 37.50 | 7.6 months |
Use your real numbers
Analify reads ad spend from Meta, TikTok and Google and new customers from Shopify, and shows CAC and payback next to customer lifetime value.
Analify already reads 6 of these 6 inputs live, from Ad accounts · Shopify
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Questions
How do I calculate CAC?
Divide marketing spend in a period by the new customers you got in the same period.
What is CAC payback period?
The months it takes for a customer's profit to cover what you paid to acquire them.
Should CAC include more than ad spend?
Blended CAC includes agencies, tools and salaries; paid CAC uses ad spend only. Use the same one every time you compare.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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