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

What stays the same across scenarios

What changes or is assumed

Calculation steps

  1. Calculate contribution per sale.
  2. Multiply contribution by the acquisition share S to get target CAC.
  3. 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%

Editorial team: MARKMA Editorial Team. Reviewed: .