How to calculate customer acquisition cost (CAC)?
Answer
Customer acquisition cost (CAC) = (Total sales + marketing expenses for a period) ÷ (Number of new customers acquired in that period). Include all relevant costs: ad spend, agency fees, campaign creative, marketing technology, salaries/commissions for sales and marketing, onboarding costs, and any related overhead tied to acquiring customers.
Example: if you spend $50,000 on marketing and sales in a quarter and win 200 new customers, CAC = $50,000 ÷ 200 = $250 per customer.
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