Customer Acquisition Cost Calculator
Calculate your customer acquisition cost (CAC) by marketing channel to optimize your marketing spend and improve ROI.
Calculate Your CAC
Include ad spend, tools, salaries, and other marketing costs
Sales team salaries, commissions, and tools
Total revenue expected from an average customer
Understanding Customer Acquisition Cost
Customer Acquisition Cost (CAC) is one of the most important metrics for any business. It tells you exactly how much you're spending to acquire each new customer. Understanding your CAC helps you make better decisions about marketing budget allocation, pricing strategy, and business profitability.
What is a Good CAC?
A "good" CAC depends on your customer lifetime value (LTV). The standard benchmark is an LTV:CAC ratio of at least 3:1, meaning each customer should generate at least 3x what you spent to acquire them. World-class companies aim for 5:1 or higher.
How to Reduce CAC
- Optimize conversion rates on your landing pages
- Focus on high-performing marketing channels
- Improve targeting to reach more qualified prospects
- Implement referral programs to leverage word-of-mouth
- Track attribution to identify and cut underperforming channels