This is your total Sales and Marketing cost. To calculate, follow these steps for a given time period (month, quarter, or year):
- Add up program or advertising spend + salaries + commissions + bonuses + overhead.
- Divide by the number of new customers in that time period.
For example, if you spend $500,000 on Sales and Marketing in a given month and added 50 customers that same month, then your CAC was $10,000 that month.