Frequently Asked Questions
Everything you need to know about the CAC Calculator and understanding your business metrics.
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts that are needed to acquire a new customer. It's one of the most important metrics for any growing business.
How do I calculate my CAC?
To calculate CAC, divide your total sales and marketing expenses (including salaries, ad spend, software, and overhead) by the number of new customers acquired during that same period.
What is a good LTV:CAC ratio?
A generally accepted 'good' LTV:CAC ratio is 3:1, meaning the lifetime value of a customer is three times what it cost to acquire them. A ratio of 1:1 means you're losing money, while 5:1 might mean you're under-investing in marketing.
Is my data safe when using this calculator?
Yes! All calculations are performed locally in your browser. We do not store, track, or transmit your financial data to any servers. Your business metrics remain completely private.
Can I export my results?
Absolutely. You can export your CAC analysis as a high-quality PNG image or a PDF report. You can even customize the branding on the export to match your company.
How often should I calculate CAC?
We recommend calculating your CAC monthly or quarterly. Tracking it over time helps you understand if your marketing and sales efforts are becoming more or less efficient as you scale.