This period
$
Ad spend + sales/marketing salaries + tools$
Use the LTV calculator if you don't have this yet$
%
Your numbers
CAC
$100.00
LTV : CAC
4.5 : 1
Payback
3.2 mo
Healthy (4.5:1).
Solid unit economics. You likely have room to invest more in acquisition and still be profitable.
Key takeaways
- CAC = sales and marketing spend ÷ new customers acquired: $2,000 ÷ 40 customers = $50.
- LTV:CAC of 3:1 or better is a common target; below 1:1 every new customer loses money.
- Payback period = CAC ÷ (monthly revenue per customer × gross margin), in months.
- Include tools, ads and contractor time in spend, or CAC looks better than it is.
Tag ad spend and tools to the product they grow, and Hustlay shows the profit each product actually returns.
Track spend per productHow it's calculated
CAC = sales & marketing spend ÷ new customers
Worked example
$5,000 spent on ads and sales tools this month, 50 new customers acquired: CAC = $5,000 ÷ 50 = $100 per customer. If each customer is worth $450 over their lifetime, the ratio is 4.5 : 1 — healthy.
CAC only makes sense next to LTV
A $100 CAC is great if the customer is worth $1,000 — and terrible if they're worth $80. CAC alone is a vanity number; always pair it with lifetime value.
FAQ
Common questions about CAC
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