Customer Acquisition Cost (CAC) is the total cost to acquire one new customer. Calculate it: CAC = (Total Sales & Marketing Costs) ÷ (Number of New Customers Acquired). For example, if you spend $10,000 on marketing and acquire 100 customers, your CAC is $100.
- 1:3
- target CAC:LTV ratio — IdeaProof Research 2026
- $200-1K
- average B2B CAC — IdeaProof Research 2026
- $10-200
- average B2C CAC — IdeaProof Research 2026
- 6-12 mo
- CAC payback period target — IdeaProof Research 2026
Customer Acquisition Cost (CAC) is the total cost to acquire one new customer. Calculate it: CAC = (Total Sales & Marketing Costs) ÷ (Number of New Customers Acquired). For example, if you spend $10,000 on marketing and acquire 100 customers, your CAC is $100. Healthy CAC to LTV ratio is 1:3 (customer lifetime value should be 3x CAC). Track CAC by channel to optimize spend. Reduce CAC through organic channels, referrals, and better targeting.
Key Customer Acquisition Cost Takeaways
- CAC = Total Marketing & Sales Costs ÷ New Customers Acquired
- Healthy CAC:LTV ratio is 1:3 (LTV should be 3x CAC)
- Include all costs: ads, salaries, tools, content, events
- Track CAC by channel to identify best-performing sources
- Lower CAC through: SEO, content marketing, referrals, partnerships
- Average CAC varies: B2C $10-200, B2B $200-1,000+
Expert Tips
Track CAC by channel
Some channels cost 10x more per customer - optimize spend accordingly
Include all costs
Don't forget salaries, tools, content, events - not just ad spend
Calculate blended vs new channel CAC
New channels often have higher initial CAC that improves with optimization
Monitor CAC payback period
Target 6-12 months - longer means cash flow problems
Recommended Tools & Resources
Mixpanel
Track acquisition funnel and conversion
Your Next Steps
Sources & Citations
- [1]IdeaProof Research 2026
Cite this page
IdeaProof. (2026). What is Customer Acquisition Cost (CAC) and How to Calculate It?. IdeaProof. Retrieved from https://ideaproof.io/questions/what-is-cacLast verified: