What is CAC?
Customer Acquisition Cost: the average spend to win one new customer, found by dividing acquisition spend by customers gained.
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CAC Reduction Impact Calculator
See how cutting customer acquisition cost either saves budget for the same customers or wins more for the same spend.
customers = budget / CAC ; savings = customers × (old CAC − new CAC)
Frequently asked questions
Why does cutting CAC help two ways?
With a fixed budget, a lower CAC either buys you more customers for the same money, or lets you keep the same customers and bank the saving. The calculator shows both options.
How do I lower CAC in practice?
Better targeting, higher conversion rates, referrals, and retaining customers so you rely less on buying new ones. Each chips away at the average cost.
What is a healthy CAC?
Only meaningful next to lifetime value. A common guide is that a customer's lifetime value should be at least three times their acquisition cost.
Does a low CAC always mean success?
Not if it comes from chasing cheap, low-quality customers who churn fast. CAC has to be read alongside retention and lifetime value.