Customer Acquisition Cost Calculator
Calculate your Customer Acquisition Cost (CAC) and LTV:CAC ratio.
Understand if your marketing spend is sustainable.
Customer Acquisition Cost
CAC (Customer Acquisition Cost) is the average cost to acquire one new customer.
CAC = Total Marketing & Sales Spend / Number of New Customers Acquired
LTV:CAC Ratio measures sustainability:
LTV:CAC = Customer Lifetime Value / CAC
Healthy LTV:CAC benchmarks:
- Below 1:1 — Losing money on each customer (unsustainable)
- 1:1 to 2:1 — Break-even to marginal; needs improvement
- 3:1 — Ideal ratio for most businesses
- 5:1+ — You may be under-investing in growth
CAC by industry (average):
- SaaS: $200–$1,200
- E-commerce: $10–$50
- Financial services: $175–$500
- Healthcare: $300–$900
- B2B: $500–$2,000
Example: $50,000 marketing spend, 200 new customers, $750 LTV:
- CAC: $250
- LTV:CAC: 3:1 (healthy)