Definition
The average amount of money you spend to acquire each of your customers.
To calculate CAC, divide your total sales and marketing spend (including personnel) over a certain period of time by the total number of new customers you acquire during that same period of time.
Example:
- Last month, you spent €300’000 in Sales and Marketing
- Last month, you acquired 2 customers
- Last month, your CAC has been €150’000