Customer Acquisition Cost (CAC) Calculator
Calculate your customer acquisition cost across all marketing channels and optimize your budget allocation.
Marketing Channels
Paid Search (Google Ads)
Paid Social (Facebook/Instagram)
LinkedIn Ads
Display Ads
Content Marketing
Email Marketing
Affiliate/Partners
Events & Conferences
Sales Costs
Business Metrics
LTV:CAC Ratio
healthyCAC by Channel
Recommendations
How CAC is Calculated
Customer Acquisition Cost (CAC) is calculated by dividing total sales and marketing costs by the number of new customers acquired:
CAC = (Marketing Spend + Sales Costs) / New Customers AcquiredA healthy LTV:CAC ratio is typically 3:1 or higher, meaning each customer generates at least 3x their acquisition cost in lifetime value.
Frequently Asked Questions
What is a good CAC?
A good CAC depends on your industry and customer lifetime value (LTV). Generally, aim for a LTV:CAC ratio of 3:1 or higher. For SaaS businesses, CAC typically ranges from $150-$1000.
Should I include sales costs in CAC?
Yes, CAC should include all costs associated with acquiring customers, including marketing spend, sales salaries, commissions, and tools.
How can I reduce my CAC?
Focus on your most efficient channels, improve conversion rates, optimize ad targeting, leverage organic channels (SEO, content marketing), and improve sales efficiency.
What if my CAC is higher than LTV?
This is unsustainable. You need to either reduce CAC (optimize marketing, improve conversion), increase LTV (better retention, upsells), or both.
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