CAC is best evaluated relative to Customer Lifetime Value (LTV). An LTV:CAC ratio of 3:1 or higher is generally considered healthy. If LTV:CAC is below 1:1, you are losing money on every customer.

What costs should be included in CAC?

Include all marketing and sales costs directly attributable to acquiring customers: advertising spend, agency fees, content creation, sales team salaries and commissions, CRM software, and marketing tools.

How can I reduce my CAC?

Strategies include improving conversion rates at each stage of the funnel, investing in lower-cost organic channels (SEO, content), building referral programmes, and retargeting existing audiences.

Customer Acquisition Cost Calculator

Customer Acquisition Cost (CAC) is the total cost of acquiring one new customer. Calculate your CAC across all channels or for a specific campaign to understand marketing efficiency.

How it's calculated

CAC = Total acquisition cost ÷ Number of new customers acquired

Include all costs: ad spend, agency fees, sales salaries, tools, and any other expense directly related to acquiring customers.

Frequently Asked Questions

What is a good CAC?: CAC is best evaluated relative to Customer Lifetime Value (LTV). An LTV:CAC ratio of 3:1 or higher is generally considered healthy. If LTV:CAC is below 1:1, you are losing money on every customer.
What costs should be included in CAC?: Include all marketing and sales costs directly attributable to acquiring customers: advertising spend, agency fees, content creation, sales team salaries and commissions, CRM software, and marketing tools.
How can I reduce my CAC?: Strategies include improving conversion rates at each stage of the funnel, investing in lower-cost organic channels (SEO, content), building referral programmes, and retargeting existing audiences.