CAC Calculator

CAC Budget Calculator

How to Use the Calculator:

  1. Enter your average revenue per customer. (This should be a dollar amount figured on an annual basis).
  2. Input the typical customer lifespan in years.
  3. Set the percentage of your lifetime customer value (LTV) you’re willing to spend per new customer acquisition. (Our recommendation is 25% but a more aggressive strategy may call for a much higher percentage).
  4. Click “Calculate CAC Budget”.

This calculator helps you determine the maximum amount you should spend to acquire a customer while maintaining profitability. By considering lifetime value, profit margins, and acquisition costs, you can make informed decisions about your marketing and advertising budgets and strategies, ensuring sustainable growth for your business.