CAC Calculator
All spend that generated these customers
$
Number of new customers from this spend
Average lifetime value — unlocks LTV:CAC ratio
$
For margin-adjusted CAC analysis
%
Your results
LTV:CAC ratio health guide: 3:1 or above = sustainable growth. 2–3:1 = marginal — investigate acquisition efficiency. Below 2:1 = unprofitable — you're spending more than customers return. SaaS target: 3:1 minimum with a payback period under 12 months.
Benchmarks
| Channel / metric | Average | Context |
|---|---|---|
| SaaS (avg CAC) | $205 | Average across inbound + outbound + paid channels |
| B2B services | $536 | Higher due to longer sales cycles and relationship costs |
| Ecommerce | $45 | Wide range: $10 (email) to $150+ (paid social) by channel |
| Financial services | $875 | High-value customer justifies higher acquisition cost |
| LTV:CAC target | 3:1 | Minimum ratio for sustainable growth — SaaS and B2B standard |
| CAC payback target | <12 mo | Time to recoup acquisition cost; <6 months = excellent |
Frequently asked questions
CAC (customer acquisition cost) is the total cost of acquiring a new customer. Formula: Total marketing + sales spend ÷ New customers acquired. Include all costs: ad spend, agency fees, sales team time, software, and events. CAC is most meaningful when compared against customer lifetime value (LTV) — a high CAC can be justified by a high LTV.
The widely accepted benchmark for SaaS and B2B businesses is 3:1 — the customer lifetime value should be at least 3× the cost to acquire them. Below 2:1 typically indicates unsustainable unit economics. Above 5:1 may indicate under-investment in growth (you could afford to acquire more customers profitably). E-commerce benchmarks are lower due to higher churn.
The most effective levers: (1) improve conversion rates on landing pages — a 1% improvement in conversion rate halves CAC on that channel at the same spend, (2) shift budget to lower-CAC channels identified through per-channel attribution, (3) invest in content and SEO which has near-zero marginal CAC at scale, (4) implement referral programmes — referred customers have 20–50% lower CAC and higher LTV.
CPA (cost per acquisition) measures the cost of any conversion event — a lead, a sign-up, a download. CAC measures only the cost of acquiring a paying customer. A CPA of $15 for a lead with a 5% lead-to-customer rate implies a CAC of $300. For businesses with long sales cycles, CPA is an intermediate metric; CAC is the business-health metric.
Calculate full marketing ROI
Compare every channel in one tool — email, PPC, SEO, content, and social.