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CAC: Customer Acquisition Cost


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.

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