Customer Acquisition Cost (CAC): A guide for 2024

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In this guide, you'll learn...

  • Clear steps for calculating your CAC

  • How to know if you have a “good” CAC

  • Ways to reduce your CAC and improve LTV:CAC ratio

How much do you spend to acquire a new customer?

A customer acquisition cost (CAC) is the measure of all the money you spend on sales and marketing to acquire each new customer. In this guide, we share the CAC formula and explain how to calculate it. We also look at what makes a "good" CAC, how to determine an LTV:CAC ratio, and what steps you can take to improve both metrics for long-term success.