Customer Acquisition Cost (CAC)
Calculate true CAC from all marketing and sales spend — and see your LTV:CAC ratio, the single most important SaaS/growth metric.
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How this calculator works
CAC is the total cost to acquire one paying customer, including all marketing and sales expenses. On its own, CAC means little — it must always be compared to LTV. A CAC of ₹5,000 is great if LTV is ₹50,000, but unsustainable if LTV is ₹6,000. The LTV:CAC ratio should be at least 3:1 for a healthy business.
CAC = (Marketing spend + Sales cost) ÷ New customers acquired | LTV:CAC = Customer LTV ÷ CAC | Payback = CAC ÷ (LTV ÷ Avg customer lifetime months)
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
3:1 is the benchmark
LTV:CAC of 3:1 means for every ₹1 spent acquiring a customer, you earn ₹3. Below 1:1 means you lose money on every customer.
Blended vs channel CAC
Your blended CAC hides channel efficiency. Calculate CAC per channel — SEO, paid, referral — to know where to invest.
Payback under 12 months
If it takes more than 12–18 months to recover CAC, your working capital needs are very high. Aim for under 6 months.
Frequently Asked Questions
LTV:CAC of 3:1 means for every ₹1 spent acquiring a customer, you earn ₹3. Below 1:1 means you lose money on every customer.
Your blended CAC hides channel efficiency. Calculate CAC per channel — SEO, paid, referral — to know where to invest.
If it takes more than 12–18 months to recover CAC, your working capital needs are very high. Aim for under 6 months.