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Target CAC Calculator
Know exactly how much you can spend to acquire a customer while staying profitable. Get your breakeven CAC and see how different CAC levels impact your margins—helping you balance profitability vs. growth as you scale.
Why is Knowing Your Target CAC Important?
Your Customer Acquisition Cost (CAC) directly impacts your profitability and ability to scale. By knowing your breakeven CAC and how different CAC levels affect margins, you can make informed decisions about whether to prioritize aggressive growth or higher profitability.
Choosing the Right CAC Strategy
- Low Profit Margin (5%) → Aggressive Scaling
- Prioritize rapid growth by reinvesting more into acquisition. Ideal for brands aiming for market dominance or high repeat purchase rates.
- Moderate Profit Margin (10%) → Balanced Growth
- A sustainable balance between profitability and scale—good for brands optimizing both revenue and cash flow.
- High Profit Margin (20%) → Profit First
- Focus on strong margins and efficient ad spend, perfect for brands with limited budgets or seasonal demand.
What If You Have High LTV or a Subscription Model?
For businesses with strong lifetime value (LTV), a 3:1 or 4:1 LTV:CAC ratio is a good benchmark. This means if your average customer is worth $300 in LTV, spending $75-$100 to acquire them is sustainable. Subscription and repeat-purchase brands should factor in future revenue, not just first-order profit.