Free tool
CAC Calculator
CAC (Customer Acquisition Cost) is what you pay, all-in, to win one new paying customer. It's the foundation of sustainable unit economics.
Enter your total sales and marketing cost for a period and the number of new customers it produced.
Your numbers
Your CAC
₹3,000
CAC = Total sales & marketing cost ÷ New customers
Making sense of the result
- CAC is only meaningful next to customer lifetime value (LTV).
- A healthy business typically has an LTV:CAC ratio of around 3:1 or better.
Frequently asked questions
What should be included in CAC?
Everything spent to acquire customers — ad spend, marketing and sales salaries, software, agency fees, and creative costs. Leaving costs out produces a flattering but misleading number.
Related reading
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