What this calculator tells you
Customer acquisition cost connects marketing spend with the economics of each new customer. A channel can look busy and still destroy contribution margin.
When to use it
Use it when planning ad spend, comparing channels, or deciding whether a higher average order value is needed.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Using only ad spend and ignoring creative, agency, software, or affiliate costs can produce an unrealistically low CAC.
Frequently asked questions
Should I use first-order or lifetime profit?
Calculate both. First-order coverage shows immediate cash pressure; lifetime coverage shows the value of retention.
What counts as acquisition spend?
Include media spend and the direct costs required to acquire the customer, such as affiliate commissions and campaign production.
Does a high CAC always mean a bad channel?
No. A high CAC can be acceptable if repeat purchases and lifetime contribution are strong.
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