blog · May 23, 2026

How much is a good CAC for DTC in 2026?

Depends on AOV + LTV. Heuristic: target CAC under 30% of first-order AOV, payback under 6 months blended. Above that and your unit economics are fragile.

The 30% rule

Healthy CAC for new DTC brands targets 30% or less of first-order AOV. AOV $40 → CAC ≤$12. AOV $80 → CAC ≤$24. AOV $150 → CAC ≤$45.

This rule fails for low-margin physical products and high-margin software/subscription products — adjust upward or downward by gross margin.

The 6-month payback rule

Blended CAC payback under 6 months = healthy. 6-9 months = stretched. Over 9 months = you're funding growth from cash reserves, not from operations.

This is the metric VCs care about for series-A DTC and the metric that determines whether you can sustainably spend on paid.

Vertical-specific medians

2026 medians from operator surveys: Cosmetics CAC $35-$55. Supplements $45-$80 (high churn drag). Apparel $40-$70. Pet food $50-$90. Home decor $80-$150 (longer consideration). CPG snack $25-$45. If you're above the median for your vertical, you have a creative or targeting problem.

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