What is a healthy CAC?
A healthy CAC should be evaluated in comparison to Customer Lifetime Value (LTV); an LTV:CAC ratio of 3:1 is generally considered a healthy benchmark for subscription businesses.
Calculate the average marketing and sales cost spent to acquire one new customer.
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Enter ad spend, marketing salaries, and software tools.
Enter total count of new customers gained in the period.
Get average CAC per paying customer.
A healthy CAC should be evaluated in comparison to Customer Lifetime Value (LTV); an LTV:CAC ratio of 3:1 is generally considered a healthy benchmark for subscription businesses.
Include direct ad spend, marketing agency fees, sales commissions, marketing tool subscriptions, and relevant sales/marketing salaries.