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Count.ie

Business · Calculator companion · By K Imports

Customer acquisition & value: practical guide

This guide explains how to use the Count.ie customer acquisition & value. Estimate CAC, gross-profit LTV and acquisition payback. Follow the inputs, method and worked example below, then compare your own scenario.

Guide written .

Open the Customer acquisition & value calculator

What to prepare

  • Gather supplier quotes, invoices, time records and the actual scope of the job or business decision.
  • Separate revenue from VAT, direct costs from overheads, and profit from the timing of cash receipts.
  • Use the same accounting period and currency for related inputs.

Understand the inputs

Lifetime months if churn is zeroAdvanced

Shown when Monthly customer churn (%) is 0.

The calculation method

CAC = acquisition spend ÷ new customers. Gross-profit LTV = monthly revenue × gross margin × estimated lifetime.

Worked example

Illustrative inputs and their result.

Example inputs

Acquisition spend (€)
5000
New customers acquired
100
Monthly revenue per customer (€)
30
Gross margin (%)
70
Monthly customer churn (%)
3

Calculated example result

CAC
€50.00
LTV To CAC
14×

How to interpret the result

A profitable estimate can still create a cash shortfall. Read the cost and timing assumptions as well as the headline profit, price or return; the result is a scenario, not a sales forecast.

Keep the scope constant while changing price, volume, supplier cost or time. A lower-sales or higher-cost case helps show whether the decision depends on an optimistic assumption.

Common mistakes to avoid

  • Do not confuse markup on cost with margin on selling price.
  • Include work that is easy to miss, such as travel, setup, rework and administration, where the model supports it.
  • Do not treat tax collected or an unpaid invoice as freely available cash.

Assumptions and sources

Constant churn and margin are assumptions. The ratio is a diagnostic, not a guarantee of a healthy business.

If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.

Related business guides

Try your own scenario in the calculator

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