CAC Calculator
Calculate your Customer Acquisition Cost and LTV:CAC ratio to measure growth efficiency.
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How to Calculate CAC
Customer Acquisition Cost is calculated by dividing total sales and marketing expenses by the number of new customers acquired in a given period.
CAC Benchmarks by Industry
| Industry | Avg CAC | Avg LTV:CAC |
|---|---|---|
| SaaS | $200-$500 | 3-5:1 |
| E-commerce | $30-$80 | 2-4:1 |
| B2B Services | $500-$2,000 | 4-8:1 |
| FinTech | $300-$1,000 | 3-6:1 |
| Healthcare | $600-$2,500 | 5-10:1 |
FAQ
What is CAC?
CAC (Customer Acquisition Cost) is the total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of new customers acquired.
What is a good CAC to LTV ratio?
A healthy LTV:CAC ratio is 3:1 or higher. This means each customer generates at least 3x what it costs to acquire them. Ratios below 1:1 mean you are losing money on acquisition.
How do you reduce CAC?
Reduce CAC by improving conversion rates, optimizing ad targeting, building organic channels, increasing referrals, and improving sales process efficiency.
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