Gross Profit Calculator
Gross profit & margin.
Open →Find CAC from sales & marketing spend and new customers.
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| Total spend | — |
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Customer acquisition cost (CAC) is what you spend, on average, to win one new customer: total sales and marketing spend divided by the number of new customers it produced. Spend $10,000 to acquire 200 customers and your CAC is $50.
CAC only makes sense next to customer lifetime value. If a customer is worth $600 over their lifetime and costs $50 to acquire, the economics are strong; if CAC approaches CLV, growth is unprofitable.
CAC = total sales & marketing spend ÷ new customers
Divide your total sales and marketing spend by the number of new customers it brought in.
There’s no universal number — it depends on lifetime value. Aim for CLV at least three times CAC.
All sales and marketing costs to win customers — ad spend, salaries, tools and commissions — over the period.
Gross profit & margin.
Open →Lifetime value per customer.
Open →Churn & retention.
Open →Operating earnings.
Open →Same plain method, different figures.
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