Want to know exactly how much it costs to bring in each new customer? Our CAC (Customer Acquisition Cost) Calculator gives you a clear view of your marketing efficiency. Simply enter your total spend and the number of new customers acquired to see how effective your campaigns really are—and whether your customer acquisition strategies need a tweak.
Suppose you spent $10,000 on a marketing campaign and acquired 50 new customers during that timeframe.
This means each new customer effectively costs you $200 to acquire, a crucial insight when planning budgets or comparing acquisition channels.
CAC tells you how cost-effective your marketing efforts are. If your Lifetime Value (LTV) is higher than your CAC, you’re likely on the right track. If not, it might be time to optimize your campaigns.
You can calculate CAC for each channel separately. For instance, if you spend $5,000 on Facebook Ads and gain 25 customers from that channel, your CAC for Facebook alone is $200. Comparing different channels helps you allocate budget more effectively.
Improving CAC typically involves optimizing your ad targeting, refining your messaging, and streamlining your sales funnel. You can also focus on retention and upsellingfor existing customers to boost overall profitability.