Growth marketer operator · San Jose, CA | ZuAI: 10K → 2M users at $0.02 CAC | $300k/mo ad spend managed
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CAC calculator

CAC is what it costs you to get one new user. paid CAC counts only the users your ads brought. blended CAC divides the same spend across everyone who arrived, including the ones who came free. founders quote blended when they want the number to look good, so know which one you are looking at.

Paid CAC ... what each user from ads actually cost you
Blended CAC ... the same spend spread across every new user
Total new users ...
Share arriving free ... the higher this is, the further blended CAC drifts from the truth

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How CAC is calculated

paid CAC is total acquisition spend divided by the users that spend brought in. blended CAC is the same spend divided by every new user in the period, however they arrived.

the gap between the two is the interesting part. if your blended CAC is far below your paid CAC, most of your growth is organic and your ads are doing less than the headline suggests. that is fine, as long as you know it.

What to do with the number

CAC on its own means nothing. it only becomes useful next to lifetime value, because the question is never "is this cheap" but "do I earn it back, and how fast". check it against the LTV to CAC calculator.

a warning worth repeating: do not include salaries in CAC unless you also do so consistently every month. mixing definitions between months is the most common way founders convince themselves growth is improving when it is not.

Numbers tell you what. They do not tell you what to do.

bring your real numbers to the breakdown call and leave with a plan for them. free, no pitch deck.

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FAQ

Common questions

Should I include salaries in CAC?

you can, and some investors will ask you to, but be consistent. pick one definition and keep it for every month you report. the number is for comparing periods against each other, and that only works if the definition holds still.

Is a $0.02 CAC realistic?

that was ZuAI blended, over a long run, in a market with cheap inventory and heavy organic pull from UGC. it is real but it is not a benchmark for you. your own CAC depends on your category, country and price point, and comparing yourself to someone else's number is mostly a way to feel bad.

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