CAC Calculator

Why CAC Matters

Customer Acquisition Cost (CAC) tells you how much it costs to win a new customer. It's a critical metric for startups, SaaS companies, e-commerce, and any business investing in marketing and sales. Knowing your CAC helps you optimize budgets, measure ROI, and improve profitability.

How to Use This Calculator

• Marketing Costs: All expenses for advertising, content, SEO, etc.
• Sales Costs: Salaries, commissions, tools, and overhead for sales team.
• New Customers: Number of paying customers acquired in the same period.
• Click "Calculate CAC" to see your average cost per customer.

Formula Used

Example: $20,000 spent on marketing and sales → 400 new customers →
CAC = 20,000 / 400 = $50 per customer

Real-World Applications

• Startups: Validate growth strategy before scaling
• E-commerce: Compare CAC across ad platforms (Facebook vs Google)
• SaaS: Measure efficiency of free-to-paid conversion
• Subscription Services: Optimize onboarding and trial-to-paid rates
• Marketing Teams: Justify budget requests with ROI data

Industry Benchmarks (Average CAC)

Tips to Lower Your CAC

• ✅ Improve targeting — focus on high-intent audiences
• ✅ Optimize landing pages for higher conversion rates
• ✅ Use referral programs — existing customers bring in new ones cheaply
• ✅ Retarget website visitors with ads
• ✅ Invest in SEO & content for long-term organic growth

Advanced Use: CAC vs. LTV

The true test of profitability is the LTV:CAC ratio:

Rule of thumb:

• Ratio < 1 → Losing money
• Ratio = 3 → Healthy
• Ratio > 5 → Excellent efficiency

Example: If LTV is $1,200 and CAC is $300 → LTV:CAC = 4 → Strong return.