Unit Economics

CAC Calculator

Are you paying too much for customers? Calculate your Customer Acquisition Cost and LTV ratio instantly.

Include ad spend, agency fees, and software costs.

Total paying customers gained in the same period.

How much a customer spends with you over their entire life.

Customer Acquisition Cost
$41.67
Cost to acquire one customer
LTV : CAC Ratio
6.0x Healthy
Your CAC is healthy. To scale faster without increasing costs, focus on Conversion Rate Optimization (CRO).
Lower My CAC with Zyro

What is CAC?

Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts required to acquire a new customer. It is a critical metric for determining the profitability of your business model.

Formula: Total Marketing Spend / New Customers Acquired = CAC

What is a good LTV:CAC Ratio?

  • 1:1 (Bad): You are losing money on every customer once operating costs are factored in.
  • 3:1 (Good): The industry standard. You make 3x what you spend to acquire a customer.
  • 5:1 (Great): Your business is highly profitable. You should likely spend more to grow faster.

How to lower your CAC?

The most effective way to lower CAC isn't to buy cheaper ads—it's to improve your Conversion Rate. If you double your website's conversion rate, you effectively cut your CAC in half because you get twice as many customers for the same ad spend.