Calculate your customer acquisition cost (CAC) in B2B
· Growth · 7 min
Customer acquisition cost (CAC) is one of the most decisive metrics in B2B: it tells you how much you spend to sign a new customer. Ignored, it leads to growth while losing money. When managed, it becomes the compass for your growth. Here’s how to calculate it and use it.
The CAC formula
CAC = Total acquisition spend over a period ÷ Number of customers signed over that period.
Acquisition spend includes everything used to generate customers: salaries and employer costs for the sales and marketing team, prospecting tools, advertising, agency services, and prospect lists.
The CAC / LTV ratio
CAC only makes sense in relation to customer lifetime value (LTV), meaning the total revenue a customer generates over the duration of the relationship. A LTV/CAC ratio of 3 means a customer brings in three times what it cost to acquire. Below 1, you lose money with every new signature.
| LTV/CAC ratio | Interpretation |
|---|---|
| < 1 | Unprofitable acquisition: you lose money |
| 1 to 3 | Sustainable but limited margin |
| ≥ 3 | Healthy zone generally targeted in B2B |
Levers to reduce your CAC
— Better targeting to spend less on off-target accounts: a precise ICP (in French) directs every euro toward the right accounts.
— Improve qualification so you don’t waste time on prospects that won’t sign.
— Increase deliverability and personalization to raise the response rate without spending more.
— Measure by channel to reallocate budget toward what converts best.
Outsourcing prospecting can also reduce CAC by turning a fixed cost (salaries) into a variable cost based on an outsourcing guide.
Common calculation mistakes
— Forgetting salaries in acquisition spend: this is the biggest line item in B2B.
— Calculating CAC over too short a period: in B2B, the sales cycle means today’s spend signs a customer several months later.
— Comparing CAC without LTV: a high CAC is acceptable if the LTV is even higher.
Frequently asked questions
- What is a good CAC in B2B?
- There’s no universal benchmark: CAC depends on the industry, the sales price, and the sales cycle. The real question is the LTV/CAC ratio, which is generally considered healthy above 3.
- Should tools be included in CAC?
- Yes, everything used to acquire customers is included in the calculation: salaries, tools, advertising, and services. Excluding them underestimates the true cost.
- Does CAC decrease over time?
- Not automatically. Without optimizing targeting and conversion, CAC tends to increase as easy prospects get exhausted.
CAC is the compass for B2B growth: it turns sales effort into a decision you can manage. At Mooniz, we help our clients reduce their CAC by targeting better and converting better—without sacrificing the quality of meetings. Discover our services →