CPA to CAC Calculator

How to calculate CAC from CPA?

CAC represents the total cost of winning a customer, while CPA often refers to the cost of a lead before the final sale.

Formula: CAC = CPA / Close Rate %

Using the CPA-to-CAC calculator: an example

If your marketing campaign generates leads at a $40 CPA with a sales team that closes 10% of those leads.

Step-by-step calculation:

1. Identify your Cost Per Lead (CPA) of $40.
2. Determine your Close Rate as a decimal (10% = 0.10).
3. Divide the CPA by the Close Rate: $40 / 0.10.
4. Result: Your final CAC is $400.

Frequently Asked Questions

What is a good CAC-to-LTV ratio?

A healthy ratio is typically 3:1, meaning the lifetime value is 3x the acquisition cost.

Why is my CAC much higher than my CPA?

This happens when your close rate is low; every lost lead increases the burden on the successful conversions.

How can I lower my CAC?

You can lower CAC by either reducing the cost per lead (CPA) or improving your sales conversion efficiency (Close Rate).