Blended CAC Calculator
Understand the total average cost to acquire a new customer.
Your Blended Customer Acquisition Cost
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Understanding Blended CAC
What is Blended CAC?
Blended Customer Acquisition Cost (CAC) is the total cost of your marketing and sales efforts divided by the total number of new customers you acquired in a given period. Unlike channel-specific CAC, a blended CAC gives you a high-level, “big picture” view of your acquisition efficiency. It includes the costs and results from every channel, both paid (like Google Ads) and organic (like SEO and word-of-mouth).
Why is Blended CAC Important?
- Measures Overall Efficiency: It’s the simplest way to understand the overall cost-effectiveness of your entire growth engine.
- Essential for LTV to CAC Ratio: Blended CAC is a key component in calculating your LTV:CAC ratio, which is the ultimate measure of your business model’s profitability.
- High-Level Trend Analysis: Tracking your blended CAC over time helps you see if your overall efficiency is improving or declining as you scale.
Limitations to Consider
While useful, a blended CAC can sometimes be misleading. Because it averages all channels together, it can hide the poor performance of a specific, expensive channel. It’s best used in conjunction with channel-specific CAC analysis to get a complete picture of your marketing performance.