Calculate how much it costs to acquire each new customer. Enter your marketing and sales expenses to find your CAC and evaluate channel efficiency.
Ads, content, SEO, social
Salaries, commissions
CRM, analytics, etc.
Leads generated in period
Customers acquired in period
CAC
$340
per customer
Total Spend
$8,500
Cost per Lead
$42.50
Lead → Customer
12.5%
CAC benchmarks vary by industry. Pair with LTV for a complete picture -- aim for LTV:CAC of 3:1 or higher.
To be sustainable, customer lifetime value (LTV) should be at least 3x your CAC of $340.
LTV:CAC = 1:1
Unsustainable
$340
min LTV needed
LTV:CAC = 2:1
Break-even zone
$680
min LTV needed
LTV:CAC = 3:1
Healthy target
$1,020
min LTV needed
LTV:CAC = 5:1
Strong unit economics
$1,700
min LTV needed
How many months to recoup $340 CAC at different monthly revenue per customer:
$50/mo revenue
7
months
$100/mo revenue
4
months
$200/mo revenue
2
months
$500/mo revenue
1
month
Aim for payback within 12 months. Under 6 months is excellent.
Marketing
$5,000
58.8% of total spend
Proportional CAC: $340
Sales Team
$3,000
35.3% of total spend
Proportional CAC: $340
Tools & Software
$500
5.9% of total spend
Proportional CAC: $340
Customer Acquisition Cost (CAC) measures the total cost of converting a prospect into a paying customer. It is one of the most important metrics for any business because it directly determines whether your growth is sustainable. If it costs more to acquire a customer than they will ever pay you, the business model does not work — no matter how fast you grow.
There is no universal benchmark — a good CAC depends on your customer lifetime value (LTV). The general rule is your LTV:CAC ratio should be at least 3:1, meaning each customer generates 3x what you spent to acquire them. A ratio below 1:1 means you are losing money on every customer.
Include all marketing spend (ads, content, SEO, social media), sales team salaries and commissions, sales tools and software, and any other costs directly tied to acquiring customers. Do not include product development, general overhead, or customer support costs.
Focus on improving conversion rates (better landing pages, clearer messaging), invest in organic channels (SEO, content marketing, referrals), optimize ad targeting, and reduce sales cycle length. Often the cheapest path is improving conversion rather than increasing traffic.
Yes. Your blended CAC is useful for overall health, but per-channel CAC helps you allocate budget effectively. You may find that paid ads cost $200/customer while referrals cost $20 — that insight lets you shift spending toward more efficient channels.
Customer Lifetime Value Calculator
Estimate the total revenue a customer will generate over their relationship with your business. Calculate LTV, payback period, and the critical LTV:CAC ratio.
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