CAC calculator, with CPA and payback

CAC (customer acquisition cost) is what you spend to win one new customer: marketing spend divided by first-time customers in the same period. Spend $40,000 in a month, win 1,000 new customers, and CAC is $40.

$40Blended CAC for Demo Brand, a made-up store$40,000 ÷ 1,000 new customers
$40.00Blended CACTotal marketing ÷ new customers
$50.00Paid CAC: ad spend ÷ new customers from ads
$30.00CPA: ad spend ÷ every ad-credited purchase
40%of ad-credited purchases were repeat buyers (400)
$30.00Profit per order before ads
3.3Months to pay back blended CAC. The first order covers 75%.
–LTV:CAC on blended CAC. Add LTV to see it.
CAC vs CPA

Same ad spend, different denominator.

Blended CAC

All marketing ÷ new customers

The full cost of a new customer, from every channel. Read it in Shopify.

Paid CAC

Ad spend ÷ new customers from ads

What ads alone pay per first-time buyer. Decides how far ads can scale.

CPA

Ad spend ÷ purchases

Counts repeat buyers too, so it reads lower than CAC. Use it to compare ads.

CAC payback

Months until profit covers CAC

The first order's profit, then repeat orders, until CAC is paid back.

Profit per order = order value × margin − shipping and fees. Payback months = (CAC − profit per order) ÷ (monthly repeat rate × profit per order). LTV:CAC = lifetime profit ÷ CAC.

Worked example · Demo Brand, made up

One month, four numbers.

$40 blended CAC

$40,000 on all marketing brought 1,000 first-time customers.

$50 paid CAC

$30,000 of that was ads, and 600 new customers came from ads.

$30 CPA

The platforms credited 1,000 purchases. 400 were repeat buyers.

3.3 months payback

An $80 order keeps $30, so $10 of CAC is left. 10% reorder monthly: $3 a month.

Platform vs Shopify

Why Meta's CPA looks cheaper than CAC.

  • Repeat customers count as purchases.
  • Two platforms can claim one order.
  • View-through credit counts orders nobody clicked.

Judge the store on Shopify numbers: MER for all revenue, CAC for new buyers. Use platform ROAS and CPA to pick ads.

$30Demo Brand CPA in the ad platformMade up · 1,000 purchases
$50Demo Brand paid CAC from ShopifyMade up · 600 new customers
Questions

What founders ask about CAC.

What is CAC in ecommerce?

Customer acquisition cost: marketing spend divided by first-time customers in the same period. $40,000 of spend and 1,000 new customers is a $40 CAC.

What is the difference between CAC and CPA?

CAC counts only new customers. CPA divides ad spend by every purchase a platform credits, repeat buyers included, so CPA usually reads lower than CAC.

Should CAC include agency and creative costs?

Blended CAC should: ads, agency, creative, creators and tools. Paid CAC uses ad spend only. Keep each definition the same every month so trends mean something.

What is a good CAC payback period?

Zero is best: the first order pays back CAC, so growth funds itself. Longer payback works only with steady repeat orders and the cash to wait.

How do I count new customers from ads?

Use Shopify's first-time customer orders filtered to paid channels by UTM. If you can't split them, enter all new customers and treat paid CAC as a floor.

Find the leak before you buy more traffic.

  1. 1Call
  2. 2Audit
  3. 3Strategy and plan
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