adlicio.
ProductPlatformsWorkflowMCPDocsPricingLogin
Find ad angles
FREE TOOL

Know what a new customer really costs.

Enter your ad spend, other acquisition costs, and new customers to get your CAC. Add an LTV to unlock the LTV:CAC verdict. Free, no signup.

Enter your acquisition numbers

Updates as you type. Blank fields count as zero.

Not sure what your LTV is? Work it out with the LTV calculator, then paste it in here.

CAC$50.00= $7,500.00 total cost ÷ 150 new customersWhat one new customer costs you to acquire.
Verdict at 3.6 : 1

3 to 1 or better: healthy. Each customer returns several times what they cost, leaving room to fund growth.

Payback framing: the ratio says nothing about speed. If most of that LTV arrives over 12 months, you front the CAC today and wait to earn it back, so cash flow can hurt even at a healthy ratio.

Total acquisition cost$7,500.00Ad spend plus other acquisition costs.
LTV : CAC ratio3.6 : 1Lifetime value returned per dollar of CAC.
LTV minus CAC$130.00Lifetime profit contribution per customer, before COGS.
Cohort value$19,500.00LTV minus CAC across all new customers this period.

You know what a customer costs. The fastest way to lower it is a sharper angle.

CAC drops when the creative converts more of the traffic you already pay for. Adlicio scrapes real comments and reviews from Reddit, YouTube, Amazon and more, then ranks them into the angles, objections, and hooks that win customers cheaper.

Try Adlicio freeSee how it scrapes Reddit
01Field guide

What CAC is, and how to judge it

CAC is customer acquisition cost, your total acquisition spend divided by the new customers it produced. The honest version includes more than ad spend: agency fees, creative production, tools, and first-order discounts all belong in the numerator. And the denominator counts first-time customers only. A repeat buyer was not acquired this month, so counting them flatters the number and hides a real problem.

CAC on its own is half a sentence. A $50 CAC is excellent for a brand whose customers are worth $250 over their lifetime and fatal for one whose customers spend $40 once. That is why the ratio matters: LTV divided by CAC. Under 1 to 1 you lose money on every customer. Between 1 and 3 to 1 you are technically positive but thin. At 3 to 1 or better you are healthy, with room for COGS, overhead, and growth. If you do not know your LTV yet, the LTV calculator works it out from your order data.

One more lens: payback. The ratio ignores time, and a healthy 3 to 1 that takes 18 months to collect still drains cash while you wait. Ecommerce brands generally want the first order or two to repay the CAC. If yours does not, you are funding growth out of working capital, and the ratio alone will not warn you.

Lowering CAC almost always comes back to creative, because converting more of the traffic you already pay for beats squeezing the auction. The angles that convert come from scraping what your customers actually say. See pricing for what Adlicio unlocks.

02FAQ

CAC calculator FAQ

What is CAC and how is it calculated?

CAC is customer acquisition cost, what you spend to win one new customer. The formula is total acquisition spend divided by new customers acquired in the same period. Total spend should include ad spend plus the costs attached to it: agency fees, creative production, tools, and first-order discounts if you want the honest number. Spend $7,500 all-in and acquire 150 new customers and your CAC is $50. Count first-time customers only, since repeat orders were not acquired, they returned.

What is the difference between CAC and CPA?

CPA is cost per acquisition as your ad platform reports it, usually cost per conversion, and a conversion can be any order or lead the pixel catches, including repeat buyers. CAC is stricter: total acquisition cost divided by genuinely new customers. That makes CAC higher than platform CPA almost every time, both because the numerator includes more costs and because the denominator excludes returning customers. Use CPA to steer campaigns day to day and CAC to judge whether the business model works.

What is a good LTV to CAC ratio?

The common benchmark is 3 to 1 or better: a customer worth three times what they cost leaves room for COGS, overhead, and profit. Under 1 to 1 means you lose money on every customer you win. Between 1 and 3 to 1 is technically positive but thin, and rising ad costs or a soft quarter can flip it negative. Very high ratios, say 6 to 1 and up, can also signal underinvestment, meaning you could spend more and grow faster while staying healthy.

What is CAC payback and why does it matter?

CAC payback is how long it takes a new customer's contribution profit to repay what you spent acquiring them. The ratio alone hides this: a 3 to 1 LTV:CAC looks great, but if that lifetime value arrives over two years, you front the cash today and recover it slowly, and growth eats working capital. Ecommerce brands usually want payback within the first order or two. If yours stretches to many months, you need either more cash or a higher-margin first purchase.

How do I lower my CAC?

CAC is total cost over new customers, so you either cut the cost or convert more of the traffic you already buy. In practice the conversion side moves first and moves most: a stronger hook and angle lift CTR and conversion rate, which lowers CAC without touching budgets. Beyond creative, improve the landing page to match the ad's promise, broaden audiences to relieve auction pressure, and lean on retention so LTV can support the CAC you pay. Creative testing is the highest-leverage lever on the list.
More free tools
FROM COUNTING CAC TO CUTTING IT

You know the cost. Now win customers cheaper.

Try Adlicio free. Adlicio scrapes real comments and reviews into ranked angles and hooks that convert more of the traffic you already pay for.

Free to start. No credit card.

Find your next ad angle in 60s