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.
How 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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