👤 Customer Acquisition Cost
Calculate CAC and LTV:CAC ratio
📊 Acquisition Data
💰 Unit Economics
Customer Acquisition Cost
$400
LTV:CAC Ratio
3.0x
Target: 3x or higher
Payback Period
4 months
Net Value Per Customer
$800
Understanding Customer Acquisition Cost
Customer Acquisition Cost (CAC) measures how much you spend to acquire a new customer. It includes marketing, sales, and related expenses. Understanding CAC is essential for building a profitable business.
The LTV:CAC Ratio
The gold standard is a 3:1 ratio—meaning each customer is worth 3x what you spent to acquire them. Below 1:1 means you're losing money; above 5:1 might indicate you're under-investing in growth.