Know exactly how much you’re spending to acquire each customer. Customer Acquisition Cost (CAC) is the key metric that reveals whether your growth is sustainable and helps you make data-driven decisions about your marketing and sales investments.
Track, optimize, and scale your customer acquisition efforts with confidence. Understanding your customer acquisition cost helps you identify profitable channels, optimize your spending, and build sustainable growth strategies.
Stop guessing which acquisition channels work. CAC calculation reveals your most cost-effective channels, helping you double down on what brings customers at the right price while cutting underperforming investments.
Make every growth dollar count. By measuring CAC consistently, you’ll spot expensive acquisition channels early and redirect resources to more efficient methods before they drain your budget.
Take the uncertainty out of scaling. With clear CAC metrics for each channel, you can confidently forecast growth costs, plan expansion strategies, and maintain profitability as you scale.
Discover industry benchmarks for customer acquisition costs to evaluate your performance. These benchmarks help you set realistic targets and understand if your acquisition spending is competitive within your market.
| Industry | Average CAC | Notes |
|---|---|---|
| B2B SaaS | $200-400 | Higher for enterprise, lower for SMB-focused products. Longer sales cycles increase CAC. |
| B2C SaaS | $50-150 | Product complexity and price point heavily influence acceptable CAC. |
| E-commerce | $30-100 | Varies by price point. Premium brands can sustain higher CAC. |
| Financial Services | $500-800 | High lifetime value justifies higher acquisition costs. |
| Healthcare | $300-600 | Regulated nature and high customer value drive up acquisition costs. |
| Real Estate | $250-500 | High transaction value offsets higher acquisition costs. |
| Consumer Services | $100-300 | Local businesses typically see lower CAC than national brands. |
| Education | $400-700 | Long decision cycles but high student lifetime value. |
| Manufacturing | $350-600 | Complex sales process but high order values justify costs. |
| Professional Services | $200-500 | Relationship-based sales can increase acquisition costs. |
| Mobile Apps | $2-5 | Very sensitive to app category and monetization model. |
| Subscription Boxes | $40-80 | Success depends on customer retention and lifetime value. |
| Online Coaching | $50-150 | Lower for niched coaching, higher for executive coaching. |
| Digital Products | $20-60 | Scales well with automated sales processes and content marketing. |
| Freelance Services | $30-100 | Portfolio and referrals can significantly reduce acquisition costs. |
| Online Courses | $40-120 | Benefits from content marketing and community building. |
| Personal Branding | $25-75 | Strong personal brand can dramatically lower acquisition costs. |
| Consulting | $100-300 | Networking and thought leadership can reduce CAC significantly. |
These CAC benchmarks are compiled from various industry reports, market studies, and aggregated business data from 2020-2024. Note that acceptable CAC varies significantly based on factors like average customer lifetime value (LTV), market maturity, competition, and business model.
Get answers to common questions about calculating and optimizing your customer acquisition costs. Our comprehensive FAQ helps you understand CAC better and make informed decisions about your growth investments.
A good CAC varies by industry and business model. Generally, you want your customer lifetime value (LTV) to be at least 3 times your CAC. For example, if your average customer generates $300 in lifetime value, aim to keep your CAC under $100. However, higher CACs can be sustainable if you have strong customer retention and high repeat purchase rates. Focus on maintaining a healthy LTV:CAC ratio rather than hitting specific CAC numbers.
To calculate CAC accurately:
Include all costs related to acquiring customers:
Monitor CAC monthly for quick-converting businesses and quarterly for longer sales cycles. Track it by channel and campaign to identify what’s working. For seasonal businesses, compare year-over-year periods. Most importantly, allow enough time to capture the full acquisition cycle – rushing measurements can lead to incomplete data.
CAC can increase for several reasons:
To reduce your CAC:
Customer Lifetime Value (LTV) and CAC work together to indicate business health. Aim for an LTV:CAC ratio of at least 3:1, meaning each customer generates 3 times more value than their acquisition cost. This ensures enough margin to cover operating costs and generate profit. Higher ratios (5:1 or better) indicate stronger unit economics and growth potential.
Different channels typically have varying CAC:
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