Patient Acquisition Cost Calculator

Calculate your Patient Acquisition Cost (PAC), evaluating marketing expenditures across search ads, SEO, and referral programs against the lifetime value (LTV) of new patients.

Practice Financial Summary

Patient Acquisition Cost (PAC) Formula

PAC = Total Monthly Marketing & Intake Spend / Number of New Patients Acquired
  • Marketing Spend: Digital advertising (Google Ads, Facebook), SEO retainers, and branding.
  • Intake Allocation: Staff hours dedicated specifically to onboarding and converting new patient leads.
  • LTV-to-PAC Ratio: Lifetime Value divided by PAC (a ratio of 3:1 or higher indicates healthy marketing).

Step-by-Step Worked Example

Scenario: Medical clinic spending $2,500/month on Google Ads, $1,200 on an SEO agency, and $600 in dedicated intake staff time ($4,300 total spend), acquiring 35 new patients with an average Lifetime Value of $1,800.

Calculation Steps:

  1. Total Monthly Marketing Spend = $2,500 + $1,200 + $600 = $4,300.
  2. Patient Acquisition Cost (PAC) = $4,300 / 35 = $122.86 per patient.
  3. LTV-to-PAC Ratio = $1,800 / $122.86 = 14.65x.
  4. Monthly Gross Lifetime Value Generated = 35 × $1,800 = $63,000.
  5. Net Value Created = $63,000 - $4,300 = $58,700.
Result: The clinic acquires patients at $122.86 each. With an average LTV of $1,800, the LTV-to-PAC ratio is a highly efficient 14.6x, generating $58,700 in net long-term value monthly.

How to Use This Calculator

  1. 1Enter your monthly advertising budget across search engines, social media, and local media.
  2. 2Add agency management, SEO, or public relations retainer fees.
  3. 3Input the number of new unique patients attending appointments each month.
  4. 4Enter the estimated lifetime value (LTV) of a patient at your practice.

Assumptions & Limitations

  • New patients who cancel or no-show before their initial visit are excluded from acquired patient count.

Frequently Asked Questions

What is a good Patient Acquisition Cost (PAC) in healthcare?

Average PAC ranges from $50–$150 for primary care and general dentistry, $150–$300 for specialized therapies (chiropractic, physical therapy), and $300–$800+ for elective cash-pay surgical specialties.

What is Patient Lifetime Value (LTV)?

Patient LTV is the total gross profit a patient generates for your practice over the entire duration of their relationship, factoring in repeat visits, referrals, and diagnostic procedures.

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