Question 1

What is a Customer Acquisition Cost?

Accepted Answer

Customer Acquisition Cost (CAC) is the total marketing and sales spend required to acquire one new paying customer. Low CAC relative to Customer Lifetime Value (LTV) indicates a healthy business.

Question 2

How does the Customer Acquisition Cost work?

Accepted Answer

CAC = Total marketing & sales spend / New customers acquired Then: Track over a specific period (month, quarter, year) Then: LTV:CAC ratio > 3:1 is generally considered healthy Then: Payback period = CAC / Monthly gross margin per customer.

Question 3

Can you give an example of how to use the Customer Acquisition Cost?

Accepted Answer

Example: Input Spend $50k in Q1, acquire 200 customers gives a result of CAC = $50,000 / 200 = $250 per customer.

Question 4

Is the Customer Acquisition Cost free to use?

Accepted Answer

Yes — completely free with no registration, download, or subscription required. All calculations happen instantly in your browser.

Question 5

How accurate is the Customer Acquisition Cost?

Accepted Answer

Our Customer Acquisition Cost uses verified mathematical formulas and is accurate to multiple decimal places. Results are calculated in real-time using the same methods used by professionals.

Customer Acquisition Cost

Customer Acquisition Cost (CAC)

What is Customer Acquisition Cost?

How to Use Customer Acquisition Cost

Example Customer Acquisition Cost Examples

LTV:CAC Benchmarks

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