Enter your sales & marketing spend and new customers to get your CAC — and check it against LTV to see if your acquisition is healthy.
Get a free PPC auditCAC = Total sales & marketing spend ÷ New customers. £5,000 to win 50 customers is a £100 CAC. Include all acquisition costs, not just ad spend, for a true figure.
A healthy business aims for an LTV:CAC ratio of at least 3:1 — each customer is worth 3× what it costs to acquire them. Below that, growth gets expensive.
Divide total sales and marketing spend by the number of new customers acquired.
3:1 or higher is the widely-used benchmark for sustainable, profitable growth.
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