Customer Acquisition Cost (CAC) Calculator
Find out exactly how much it costs you to acquire each new customer. Enter all your sales and marketing costs below.
Marketing & Sales Costs
Customers & Revenue
Cost per Customer (CAC)
What is a Good CAC for Your Industry?
Customer acquisition cost varies dramatically by industry, business model, and sales cycle. The only meaningful benchmark is comparing your CAC to your customer lifetime value (LTV). A healthy business typically maintains an LTV:CAC ratio of 3:1 or higher — meaning each customer is worth at least 3x what it cost to acquire them.
How to Reduce Customer Acquisition Cost
Invest in SEO and content marketing
Organic traffic acquired through SEO has near-zero incremental CAC at scale. A blog post that ranks on Google can bring in customers for years without ongoing ad spend.
Build a referral program
Referred customers typically have a 16%+ higher lifetime value and cost a fraction of paid channels. A well-designed referral program can dramatically lower your blended CAC.
Improve conversion rates before scaling ad spend
If your landing page converts at 2% and you improve it to 4%, you instantly cut your CAC in half without changing your ad budget. Always optimize conversion before scaling spend.
Focus on your highest-converting channels
Track CAC by channel (Google Ads, social, email, organic) and reallocate budget toward the channels with the lowest CAC and highest LTV customers.