Customer Acquisition Cost Calculator
FreeCalculate your blended Customer Acquisition Cost, LTV:CAC ratio, and payback period. These three metrics tell you whether your growth engine is efficient and sustainable.
Your Monthly Spend & Customers
Payback period assumes average customer lifetime of 24 months. LTV:CAC benchmark: <1 = unsustainable, 1–3 = needs improvement, 3+ = healthy, 5+ = excellent.
Your CAC Metrics
Healthy unit economics. Your LTV:CAC ratio of 3.1x exceeds the 3x benchmark. You recover your CAC in approximately 8 months.
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CAC Calculator FAQs
What is Customer Acquisition Cost (CAC)?
CAC is the total cost of acquiring one new customer, calculated by dividing total sales and marketing spend by the number of new customers acquired in the same period. It is one of the most important unit economics metrics for any business.
What is a good LTV:CAC ratio?
A LTV:CAC ratio above 3:1 is generally considered healthy — meaning each customer generates 3x their acquisition cost over their lifetime. Below 1:1 means you are losing money on each customer. SaaS businesses often target 3:1 to 5:1.
How do I reduce my CAC?
CAC reduces through better marketing targeting (reducing wasted spend), improving landing page and sales conversion rates, investing in organic channels like SEO and content, leveraging referral programmes, and improving your ICP (ideal customer profile) targeting.
How does CAC relate to marketing channel selection?
Different channels have different CACs. PPC typically has higher CAC but faster results; SEO and content have lower long-term CAC but take longer to build. Understanding your blended CAC and per-channel CAC helps you allocate budget to the most efficient channels.