Use campaign data, funnel counts, revenue assumptions, and retention estimates for a complete profitability view.
| Channel | Total Cost | Customers | CAC | LTV | ROI |
|---|---|---|---|---|---|
| Paid Search | $24,000 | 85 | $282.35 | $2,893.18 | 597.28% |
| Outbound SDR | $18,500 | 52 | $355.77 | $2,430.00 | 364.70% |
| Partner Referrals | $9,800 | 41 | $239.02 | $3,110.00 | 798.16% |
Marketing Spend + Sales Spend + Tools Cost + Onboarding Cost
CAC = Total Acquisition Cost ÷ New Customers
(Average Order Value × Purchases Per Year × Retention Years) + Upsell Revenue Per Customer + Referral Value Per Customer
Lifetime Revenue Per Customer × Gross Margin
((Total Gross Profit − Total Acquisition Cost) ÷ Total Acquisition Cost) × 100
CAC ÷ Monthly Gross Profit Per Customer
These formulas connect funnel efficiency, contribution margin, and customer value into one decision view. They help compare campaigns using a consistent financial framework.
- Enter the campaign or channel name for easier result tracking.
- Add every acquisition-related cost, including sales support and onboarding.
- Input new customers and qualified leads from the same time period.
- Provide revenue assumptions, purchase frequency, and retention months.
- Include upsell and referral value if those customers create extra revenue.
- Set a discount rate to estimate present-value customer returns.
- Press Calculate ROI to display the result section above the form.
- Use the export buttons to save a CSV file or print the page as PDF.
1. What does customer acquisition ROI measure?
It measures how much profit your acquired customers generate compared with total acquisition spending. It combines cost, conversion, margin, and retention assumptions into one return figure.
2. Why is CAC important here?
CAC shows the average cost to win one customer. It is central because lower CAC improves payback speed, raises ROI, and makes more channels financially sustainable.
3. Should I include sales salaries?
Yes, if those salaries directly support acquisition during the measured period. Include campaign labor, agency fees, software, commissions, and onboarding costs for a fuller picture.
4. What is a good LTV to CAC ratio?
Many teams aim for 3:1 or higher. The right target depends on cash flow, payback expectations, churn, market maturity, and how predictable your customer expansion revenue is.
5. Why use gross margin instead of revenue alone?
Revenue can overstate returns. Gross margin removes delivery and service costs, so the profitability estimate better reflects the actual value available to cover acquisition spend.
6. What does discounted ROI mean?
Discounted ROI adjusts future customer value to present value using your discount rate. It is helpful when retention is long and finance teams want time-aware comparisons.
7. Can I compare multiple channels with this tool?
Yes. Run the calculator separately for each channel or segment, then compare CAC, payback months, ROI, and efficiency score to prioritize future budget allocation.
8. Why might ROI look high but cash flow stay tight?
High ROI can still come with long payback periods. If customers monetize slowly, the business may need more working capital before those profits are realized.