Customer Acquisition Cost Calculator
Computes total sales and marketing spend divided by new customers acquired
Enter spend and customers to calculate CAC
How many customers you acquire per $10,000 of spend
Frequently Asked Questions
What is customer acquisition cost (CAC)?
CAC is the total cost of acquiring a new customer, including all sales and marketing expenses divided by the number of new customers gained. If you spend $50,000 on sales and marketing and acquire 500 customers, your CAC is $100.
What is the CAC to LTV ratio?
The LTV:CAC ratio compares customer lifetime value to acquisition cost. A ratio of 3:1 or higher is considered healthy, meaning each customer generates 3x what it cost to acquire them. Below 1:1 means you are losing money on each customer.
How do I reduce CAC?
Improve conversion rates on existing channels, invest in organic marketing (SEO, content, referrals), optimize ad targeting to reduce wasted spend, improve your sales process efficiency, and focus on channels with the lowest cost per acquisition.
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