Acquisition Cost
Enter your metrics and click Calculate to see your CAC
Understanding CAC
What is CAC?
Customer Acquisition Cost is the total cost of acquiring a new customer, including all marketing and sales expenses. Formula: CAC = (Marketing Spend + Sales Spend) / New Customers Acquired.
Industry Benchmarks
Average CAC by industry: SaaS $200-$1,200, E-commerce $30-$150, Financial Services $300-$1,000, Education $100-$500, Healthcare $300-$900. B2B typically has higher CAC than B2C.
Common Questions
What's a good LTV:CAC ratio?
A 3:1 ratio is the gold standard, you earn $3 for every $1 spent acquiring a customer. Below 1:1 means you're losing money. Above 5:1 may mean you're under-investing in growth.
How do I reduce my CAC?
Improve conversion rates to get more customers from the same spend. Optimize ad targeting. Build organic channels (SEO, content, referrals). Reduce sales cycle length. Use analytics to cut underperforming channels.
Should I include all costs in CAC?
Include everything directly tied to acquiring customers: ad spend, content creation, sales salaries and commissions, tools, and agency fees. Exclude product development and general overhead for a cleaner metric.
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