CAC Calculator
Calculate Customer Acquisition Cost (CAC) to evaluate how efficiently your marketing and sales campaigns turn ad spend into paying clients.
How to use the CAC Calculator
- 1Enter total sales and marketing spend (ad spend, agency fees, sales salaries).
- 2Enter the number of new paying customers acquired during that period.
How CAC is Calculated
Divide all sales and acquisition expenses by the count of new customers acquired during the corresponding window.
- Spend covers media budgets, software, and sales overhead.
- Customers must be newly acquired.
- 1CAC = $60,000 / 150 = $400.00
What affects CAC results
- Ad platform bidding competition (CPC/CPM).
- Landing page conversion rates and sales cycle length.
Frequently Asked Questions
What is a good CAC to LTV ratio?
A healthy benchmark for scalable business models is an LTV:CAC ratio of 3:1 or higher.
What is a good LTV to CAC ratio?
An LTV:CAC ratio of 3:1 or higher is generally considered healthy for sustainable, scalable business growth across SaaS and ecommerce.
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