TikTok Customer Acquisition Cost (CAC) Calculator
Calculate how much it costs to acquire a new customer through your TikTok marketing campaigns.
Calculate Your CAC
Total spent on TikTok marketing (ads, content, tools)
Number of NEW customers gained (not repeat customers)
Period you're measuring
CAC Benchmarks by Industry
Typical Customer Acquisition Cost on TikTok by business type:
Products under $100, impulse purchases
High TikTok audience fit, strong conversion
Subscription models, higher LTV justifies cost
Longer sales cycles, higher contract values
The LTV:CAC Ratio Rule
Your business health depends on this critical ratio:
Sustainable, profitable growth
Viable but watch margins closely
Barely profitable, needs optimization
Losing money on each customer
Example: If your CAC is $50, your LTV should be at least $150 for a healthy 3:1 ratio. Use our Lifetime Value Calculator to determine your LTV.
How to Reduce Your CAC
Improve landing page conversion rate—1% increase = 10-20% CAC reduction
Build organic following first to warm up cold traffic with retargeting
Use lookalike audiences based on your best customers
Test user-generated content (UGC) ads—often 3-5× more effective
Optimize for "Purchase" instead of "Traffic" in TikTok Ads Manager
Run retargeting campaigns for website visitors (50-70% lower CAC)
A/B test ad creative weekly—winning ads can drop CAC by 30-50%
Bundle products or increase order value to improve efficiency
When High CAC is Acceptable
Sometimes a higher CAC makes business sense:
Subscription Businesses
SaaS and subscription boxes can afford $100-$200 CAC because LTV over 12-36 months is $500-$2,000+. Focus on retention and reducing churn rather than lowering CAC.
High Repeat Purchase Rate
Beauty, supplements, and consumables with 60-80% repurchase rate justify higher initial CAC. A customer acquired for $60 who buys 5× over 2 years is extremely profitable.
Market Penetration Strategy
When entering a new market, accepting a 2:1 or even 1.5:1 LTV:CAC ratio to gain market share can be strategic—if you have funding and a plan to improve unit economics.