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Customer Acquisition Cost (CAC) is the total cost to acquire one new customer. Enter your spend and new customers to find your CAC, then compare it with your LTV.
Optional — unlocks the LTV:CAC ratio.
Enter your numbers
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CAC = Total marketing & sales spend ÷ New customers acquiredInclude every cost that went into acquisition — ad spend, agency/tool fees, and sales costs — divided by the number of genuinely new customers in the same period.
CAC on its own means little. The magic ratio is LTV:CAC — a healthy business typically earns at least 3× a customer's acquisition cost over their lifetime.
If CAC is creeping up, look at conversion rate, targeting, and creative before simply cutting spend.
Our team optimises targeting, creative, and funnels to bring acquisition costs down.