Customer Acquisition Cost (CAC) Calculator
Calculate how much it costs to acquire a new customer. Enter your total sales and marketing spend, the number of new customers acquired, and optionally your customer lifetime value to see the LTV:CAC ratio.
CAC by Channel
CAC Formula
Frequently Asked Questions
A good CAC depends on your industry and LTV. The benchmark LTV:CAC ratio is 3:1 — meaning each customer should generate 3x what it cost to acquire them. A ratio below 1:1 means you are losing money on each customer.
Include all sales and marketing expenses: ad spend, salaries of sales and marketing staff, tools/software, content creation, agency fees, events, and any other costs directly tied to customer acquisition.
Improve conversion rates on landing pages, invest in organic channels (SEO, content), leverage referral programs, optimise ad targeting, and focus on retention to increase LTV which makes higher CAC more viable.
LTV:CAC measures how much value a customer generates relative to what it cost to acquire them. A 3:1 ratio is healthy. Below 1:1 is unsustainable. Above 5:1 may indicate underinvestment in growth.
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Calculate conversion rate, conversions needed, and revenue impact of rate changes.