Free marketing tool
CAC Calculator
Find out what it costs you to win one new customer, how long that cost takes to pay back, and whether it is sustainable.
How CAC is calculated
Total spend on winning customers, divided by the customers it won.
Payback is CAC divided by the monthly gross profit one customer brings. LTV is that monthly gross profit multiplied by how many months a customer stays.
| LTV : CAC | What it usually means |
|---|---|
| Below 1 : 1 | Each customer costs more than they return. Fix before scaling. |
| 1 : 1 to 3 : 1 | Profitable but thin. Little room for error or growth. |
| 3 : 1 or higher | Healthy. You can afford to spend more to grow. |
Common questions
What should I include in sales and other costs?
Salaries and commissions of the people who close customers, plus the software they use. Leave out costs of serving existing customers.
What is a good payback period?
Many businesses aim to recover CAC within 12 months. Faster is safer, especially if cash is tight.
How do I lower my CAC?
Improve conversion on your website and landing pages, cut spend on channels that do not convert, and target audiences closer to buying. Our team can review this with you.
Turn a high CAC into profitable growth
Share your numbers and we will show you where your acquisition cost can come down.