CAC Calculator
Calculate your Customer Acquisition Cost and find out how much it costs to win each customer.
Not sure what CAC means? Check the FAQ below
Required Metrics
Optional Metrics
For deeper analysisLTV:CAC Ratio
CAC Analysis
Customer Acquisition Cost
$100.00
It costs you $100.00 to acquire each customer
Payback Period
How We Calculate Your CAC
Here's how we calculate your Customer Acquisition Cost:
Total Spend
All marketing and sales costs combined
New Customers
Number of customers acquired in the period
CAC
Your Customer Acquisition Cost
Tips & Insights
- 💡 Your LTV:CAC ratio is 5.0:1. This is very high, you might be under-investing in growth. Consider scaling your ad spend to capture more market share.
- 💰 Excellent payback period of 2.0 months! You recover acquisition costs very quickly.
Frequently Asked Questions
What is CAC?
CAC (Customer Acquisition Cost) is the total cost of acquiring a new paying customer. It includes all marketing and sales expenses: ad spend, salaries, tools, content creation, and any other costs involved in winning customers. Learn more in our CAC glossary.
What's a good CAC?
There's no universal "good" CAC. It depends entirely on your Customer Lifetime Value (LTV). The golden rule is a 3:1 LTV:CAC ratio. If a customer is worth $300 over their lifetime, your CAC should be $100 or less.
What costs should I include in CAC?
Include everything related to acquiring customers: advertising spend, marketing team salaries, sales team salaries, software tools (CRM, analytics), content production costs, and agency fees. Don't include product development or customer support costs, those are separate.
What's the difference between CAC and CPA?
CPA (Cost Per Acquisition) usually refers to a single campaign or channel's cost per conversion. CAC is broader: it includes ALL acquisition costs across every channel. Your CAC is typically higher than any individual campaign's CPA because it accounts for overhead costs like salaries and tools.
How do I reduce my CAC?
Focus on improving conversion rates at every step: better ad targeting (lower CPC), better landing pages (higher conversion rate), and better sales processes. Also invest in organic channels (SEO, content, referrals) which have lower marginal costs over time.
What is CAC payback period?
The payback period is how many months it takes to recover your CAC from a customer's revenue. If your CAC is $150 and a customer pays $50/month, your payback period is 3 months. SaaS companies typically aim for under 12 months. Use our LTV Calculator to understand your full customer economics.
Why is LTV:CAC ratio important?
The LTV:CAC ratio tells you if your business model is sustainable. Below 1:1, you're losing money on each customer. At 3:1, you have a healthy, scalable business. Above 5:1, you may be under-investing in growth. Check your ROAS alongside LTV:CAC for a complete picture of your advertising efficiency.