CAC
Marketing spend divided by new customers in the same period. Count only new customers, not repeat orders.
Free tool · Calculator
Is each new customer worth the cost?
First orders rarely pay back the ads that won them. Lifetime value tells you how much you can afford to spend to win a customer.
Use the tool
- Free
- No sign-up
- Runs in your browser
Your numbers
–LTV to CAC
–Cost per new customer
–Lifetime gross profit
–Payback period
–Gross profit on first order
Runs in your browser. Nothing you type or upload is stored or sent.
How to read it
What you can afford to pay.
LTV
Order value times orders per year times years retained, times your gross margin. Using margin, not revenue, keeps the number honest.
LTV to CAC
Above 3 is healthy for most businesses. Below 1, each new customer loses money over their whole life with you.
Payback
How many months of gross profit it takes to earn back the CAC. Shorter payback means growth can fund itself.
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Questions
Before you ask.
How do I estimate years retained?
Look at customers from two or three years ago and see how long they kept ordering. If you are new, use a conservative guess and update it as data comes in.
Should CAC include agency fees?
For a full picture, yes. Include ad spend, fees and creative costs if you want the true cost of winning a customer.
Is my data stored?
No. Everything runs in your browser.
Next stepGet in touch
Want to grow past payback?
Send a short brief. A specialist reads your account with read-only access and comes back with the three changes we would make first.
01You send a short brief about the business.
02We read the account with read-only access.
03You get three changes in writing, yours to keep either way.