METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Calculate CAC for one channel or cohort at a time, then compare it with gross-profit lifetime value and the time required to recover acquisition spend.
Worked example
Spending 12,000 to acquire 80 customers gives 150 CAC. The value estimate then applies gross margin to monthly revenue across the stated lifetime.
Common mistakes
- Mixing customers from one period with spend from another.
- Leaving sales salaries or agency cost out of acquisition spend.
- Using revenue rather than gross profit in the value comparison.
Frequently asked questions
Is the customer acquisition cost calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Which period should I use?
Keep every input on the same basis—for example, one month or one financial year. Use current figures first, then save a cautious scenario for comparison.
Continue the decision
- Revenue Growth Calculator — Measure growth and project a future revenue scenario.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Popular small-business decision paths
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Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.