Customer Acquisition Cost Calculator (CAC)
The CAC metric helps you analyze the effectiveness of advertising and estimate how much it costs you to get one customer. Use it to track the effectiveness of marketing channels and optimize costs without losing customers.
LTV : CAC
1 : 1 or less
The business is working at a loss, you need to make
changes as soon as possible.
2 : 1
Customers bring two times more money than it costs to
acquire them.
3 : 1
This is the optimal ratio to hit. It means the business
model is profitable.
4 : 1
The business is very lucrative: acquiring customers is
cheap, and they bring great value to the company.