Customer Acquisition Cost Calculator

Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts needed to acquire a single new customer. It is calculated by dividing your total sales and marketing spend by the number of new customers acquired in the same period. For example, if you spent $10,000 on marketing and sales last month and acquired 50 new customers, your CAC is $200.

CAC varies significantly by industry. SaaS companies typically see CAC between $200-$500, e-commerce businesses range from $50-$100, and B2B services can run $300-$800 or more. The key metric is not CAC alone, but the LTV:CAC ratio. A healthy business should have an LTV:CAC ratio of at least 3:1, meaning each customer generates three times what it costs to acquire them.

To reduce CAC, focus on improving conversion rates through better landing pages and messaging, invest in organic channels like SEO and content marketing that compound over time, leverage referral programs to turn existing customers into acquisition channels, optimize ad targeting to reduce wasted spend, and improve your sales process to close deals faster. Dewx helps by automating outreach, tracking attribution, and providing AI-powered insights.

The ideal LTV:CAC ratio depends on your business model. A ratio of 3:1 is generally considered healthy for most businesses, meaning each customer brings in 3x what it costs to acquire them. A ratio below 1:1 means you are losing money on every customer. A ratio above 5:1 may indicate you are under-investing in growth and could scale faster. SaaS companies often target 3:1 to 5:1 for sustainable growth.