Business Growth Tool
CAC Calculator
Calculate Your Customer Acquisition Cost
Determine exactly how much it costs to acquire a new customer and optimize your marketing spend for maximum profitability.
1Campaign Details
Pro Tip: Include all costs (ad spend, software, salaries) for a true CAC calculation.
Customer Acquisition Cost
You spend $0 to acquire each new customer.
What is CAC?
CAC (Customer Acquisition Cost) is the total cost of sales and marketing efforts needed to acquire a new customer. It is one of the most important metrics for determining the health and scalability of a business.
The Formula
CAC = Total Marketing Spend / New CustomersExample: If you spent $1,000 on ads and acquired 10 customers, your CAC is $100.
The Golden Ratio: LTV to CAC
To understand if your CAC is sustainable, you must compare it to your Customer Lifetime Value (LTV). The industry standard benchmark is a 3:1 ratio.
1:1 Ratio
You are losing money. You spend as much to get a customer as they spend with you.
3:1 Ratio
Healthy business. You make 3x what you spend to acquire a customer.
5:1 Ratio
Highly profitable, but you might be growing too slowly. Consider spending more.
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