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Customer Acquisition Cost Calculator

Calculate how much it costs to acquire a new customer and optimize your marketing spend

Calculate Your CAC

Total marketing spend in the period

Sales team salaries and commissions

Number of customers acquired in the period

For calculating CAC payback period

What is CAC?

Customer Acquisition Cost (CAC) measures the total cost of acquiring a new customer, including all marketing and sales expenses.

LTV should be at least 3x your CAC for sustainable growth
CAC Payback Period should be less than 12 months
Track CAC by channel to optimize marketing spend

Enter your data to calculate CAC

How to Reduce CAC

Strategies to improve customer acquisition efficiency:

Monitor LTV:CAC Ratio

Aim for a 3:1 ratio or higher. If your LTV is lower than 3x CAC, you need to either increase customer value or reduce acquisition costs.

Optimize Marketing Channels

Track CAC by channel and double down on channels with the lowest CAC and highest conversion rates. Cut or optimize underperforming channels.

Improve Conversion Rates

Better website UX, clearer value propositions, and streamlined signup flows can significantly reduce CAC by converting more visitors into customers.

Leverage Referrals

Referral programs typically have much lower CAC than paid channels. Incentivize existing customers to bring in new ones.

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