E-commerce CAC Calculator

Calculate your customer acquisition cost (CAC) by dividing total marketing spend by new customers acquired. Optimize ad budgets and improve profitability.

$
Team, commissions, tools
$
Office, software, admin
$
$
Basic CAC
$50.00
Marketing spend only
Fully Loaded CAC
$65.00
All acquisition costs included
CAC as % of AOV
118.20%
$65.00 of $55.00
Estimated LTV
$137.50
Over 12 months at 2.5 orders/yr
LTV:CAC Ratio
2.12:1
Healthy
Payback Period
5.7 months
Time to recover acquisition cost
Net Profit per Customer
$72.50
LTV minus fully loaded CAC
Customers per $1K Spend
20.0
Marketing efficiency metric
LTV vs CAC
LTV
$137.50
CAC
$65.00

Cost Breakdown

SourceAmountShareVisual
Marketing Spend$10,000.0076.90%
Sales Costs$2,000.0015.40%
Overhead$1,000.007.70%

CAC Benchmarks by Channel

ChannelAvg CACConv RateYour GapComparison
Google Ads (Search)$45.273.75%+$19.73
Facebook / Meta Ads$18.689.21%+$46.32
Instagram Ads$20.007.50%+$45.00
TikTok Ads$14.0011.00%+$51.00
Email Marketing$10.3215.22%+$54.68
SEO / Organic$12.505.60%+$52.50
Affiliate$22.004.80%+$43.00
Marketplace (Amazon)$35.006.00%+$30.00
Planning notes, formulas, and examples

About the E-commerce CAC Calculator

Customer acquisition cost (CAC) is one of the most important metrics for any e-commerce business. It tells you exactly how much you spend in marketing and sales to win a single new customer. If your CAC is higher than the profit a customer generates, you're losing money on every sale.

This calculator divides your total marketing and advertising spend over a given period by the number of new customers acquired during that same period. The result is your cost per acquisition โ€” the price tag on each new buyer.

Understanding CAC helps you set marketing budgets, evaluate channel performance, negotiate affiliate and influencer deals, and determine whether your unit economics are sustainable. Pairing CAC with lifetime value (LTV) creates a complete picture of profitability. A healthy e-commerce business typically targets a CAC that is one-third or less of customer LTV.

When This Page Helps

Knowing your CAC helps you allocate marketing dollars efficiently, identify underperforming channels, and forecast profitability. Without it, you're flying blind on whether your ads are actually making money. It gives an instant, clear answer.

How to Use the Inputs

  1. Enter your total marketing and advertising spend for the period.
  2. Enter the number of new customers acquired during that same period.
  3. Optionally enter additional sales and overhead costs to include.
  4. View your CAC, cost breakdown, and efficiency metrics.
  5. Compare across different time periods to track trends.
  6. Use the result to evaluate if your CAC is sustainable relative to customer LTV.
Formula used
CAC = Total Marketing Spend / New Customers Acquired Fully Loaded CAC = (Marketing Spend + Sales Costs + Overhead) / New Customers

Example Calculation

Result: CAC: $50.00 | Fully Loaded CAC: $65.00

With $10,000 in marketing spend and 200 new customers, the basic CAC is $10,000 / 200 = $50.00. Adding $2,000 in sales costs and $1,000 in overhead, the fully loaded CAC becomes $13,000 / 200 = $65.00. If average customer LTV is $195 or more, the 3:1 LTV:CAC benchmark is met.

Tips & Best Practices

  • Track CAC monthly and by channel to spot trends and underperformers early.
  • Include all costs: ad spend, creative production, agency fees, software, and salaries of marketing staff.
  • Compare paid CAC to organic CAC โ€” organic is usually much lower and more sustainable.
  • Aim for an LTV:CAC ratio of at least 3:1 for a healthy business.
  • Decreasing CAC often has a bigger profit impact than increasing revenue.
  • Seasonal spikes in CAC are normal โ€” compare year-over-year, not just month-over-month.
  • Factor in attribution windows; late conversions can make CAC appear artificially high.

Why CAC Matters for E-commerce

CAC directly impacts profitability. If you spend $50 to acquire a customer who only generates $40 in profit over their lifetime, you lose $10 per customer. Scaling that means scaling your losses. CAC is the foundation of sustainable growth.

Fully Loaded CAC vs Simple CAC

Simple CAC only divides ad spend by customers. Fully loaded CAC includes all costs: team salaries, tools, creative production, and overhead. Fully loaded CAC gives a more accurate picture but is harder to calculate. Most investors and analysts prefer fully loaded CAC when evaluating business health.

Benchmarking CAC by Channel

Break down CAC by channel to find your most efficient sources. Organic search and email typically have the lowest CAC, while paid social and display ads tend to be higher. However, paid channels offer more control over volume. The best strategy blends low-CAC organic channels with scalable paid channels.

Sources & Methodology

Last updated:

Frequently Asked Questions

  • A good CAC depends on your industry and average order value, but most profitable e-commerce brands keep CAC below one-third of customer lifetime value. For low-ticket items this might be $5โ€“15; for high-ticket products $50โ€“200 can still be healthy if LTV is proportionally high.