Maximum affordable customer acquisition cost
The maximum CAC is not a market average. It is a limit set by your unit economics.
You can pay up to the contribution profit a customer generates over the selected horizon. For a first-purchase horizon, maximum CAC equals contribution from the first order. Target CAC is lower: it equals contribution multiplied by the share S the business is willing to allocate to acquisition.
What to consider
- First calculate contribution per sale: average order value minus variable costs and taxes or fees tied to the sale.
- The acquisition share S sets target CAC: target CAC = contribution × S. The remaining share (1 − S) stays with the business for fixed costs and profit.
- State the horizon explicitly: first purchase and repeat purchases are separate.
What stays the same across scenarios
- Average order value and variable costs come from your own business economics, not industry averages.
- Enter your own taxes and fees; this is not tax advice.
What changes or is assumed
- S is a management choice that leaves room for fixed costs. Do not confuse it with the share kept by the business.
- Repeat-purchase profit is excluded while the horizon is set to first purchase.
Calculation steps
- Calculate contribution per sale.
- Multiply contribution by the acquisition share S to get target CAC.
- Check maximum CAC as the limit above which advertising does not pay back.
Build the calculation in a calculator
The example also carries: Taxes and fees: 0 (currency); Purchases per customer: 1 (count); Calculation horizon: first purchase (first purchase / full horizon).
Illustrative example: Open the example: order value 5,000 ₽, variable costs 3,000 ₽, acquisition share 30%
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Editorial team: MARKMA Editorial Team. Reviewed: .