🎯 CAC Calculator
Calculate Customer Acquisition Cost from total sales and marketing spend.
What Is a Good CAC?
CAC (Customer Acquisition Cost) = Total Sales & Marketing Spend ÷ New Customers Acquired. The key benchmark is the LTV:CAC ratio. A ratio of 3:1 means each customer generates 3× what it cost to acquire them — the widely cited SaaS benchmark. Below 1:1 means you lose money on every customer. Above 5:1 may mean you're underinvesting in growth.
CAC by Industry Benchmarks (2026)
SaaS: $200–$1,500. eCommerce: $15–$150. Financial services: $175–$1,200. Healthcare: $250–$850. B2B software: $400–$2,000+. Compare your CAC to LTV — the ratio matters more than the absolute number.
People Also Ask
LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost. A ratio of 3:1 is the standard healthy benchmark for SaaS and subscription businesses. Below 3:1 suggests marketing inefficiency or poor retention. Above 5:1 may mean you're leaving growth on the table by underinvesting in acquisition.
Improve conversion rates (better landing pages, sales process), invest in organic channels (SEO, content, referral programs), optimize ad targeting to reduce wasted spend, and improve sales efficiency. A 20% improvement in conversion rate reduces CAC by 20% with zero additional spend.