Calculate customer acquisition cost (CAC), LTV:CAC ratio, and payback period. Compare against industry benchmarks. Free CAC calculator with detailed analysis.
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Customer Acquisition Cost (CAC) is one of the most critical metrics for understanding your business's unit economics. It measures the total cost of acquiring a new customer, including all marketing and sales expenses. Our free CAC calculator helps you compute your CAC, compare it against industry benchmarks, and analyze advanced metrics like LTV:CAC ratio and payback period. Whether you're a SaaS startup tracking burn rate, an e-commerce business optimizing ad spend, or an investor evaluating a company's efficiency, understanding CAC is essential for sustainable growth.
Customer Acquisition Cost (CAC) is the average expense incurred to acquire a single new customer. It includes all marketing costs (advertising, content, SEO, events), sales costs (salaries, commissions, tools), and any other expenses directly related to customer acquisition. CAC is a key component of unit economics and, when compared with Customer Lifetime Value (LTV), reveals whether your business model is sustainable. A healthy SaaS business typically aims for an LTV:CAC ratio of 3:1 or higher, meaning each customer generates at least three times what it cost to acquire them.
CAC Formula
CAC = (Total Marketing Costs + Total Sales Costs) / Number of New CustomersKnow exactly how much you're spending to acquire each customer. Identify if your marketing and sales investments are delivering results.
Compare CAC across channels to identify which acquisition strategies deliver the best return on investment.
Monitor CAC trends monthly or quarterly. Rising CAC often signals market saturation or inefficient spending.
Compare your CAC to industry averages for SaaS, e-commerce, fintech, healthcare, and more. Know if you're competitive.
Combine CAC with LTV to understand if each customer is profitable. A healthy LTV:CAC ratio (3:1+) indicates sustainable growth.
Investors closely examine CAC and LTV:CAC ratio. Strong unit economics help secure funding and justify growth investments.
Calculate blended vs. paid CAC to understand the true cost of paid acquisition and the value of organic channels.
Track CAC trends over time to identify if acquisition costs are increasing or decreasing and take action accordingly.
Demonstrate strong unit economics with your CAC, LTV:CAC ratio, and payback period to secure funding.
Use CAC data to set realistic budgets and customer acquisition targets for upcoming quarters.
Compare CAC across paid search, social, content, and other channels to reallocate spend to the most efficient ones.
Ensure your pricing supports a healthy LTV:CAC ratio. If CAC is too high, you may need to raise prices or reduce costs.
Calculate and optimize your CAC and LTV:CAC metrics before investor meetings to demonstrate business viability.
CAC (Customer Acquisition Cost) is the total cost of acquiring a new customer, including all marketing expenses (advertising, content creation, SEO, events) and sales expenses (salaries, commissions, tools). It's calculated by dividing total acquisition costs by the number of new customers acquired in a given period.