Total sales and marketing spend divided by new customers won.
CAC only means something next to LTV — spending $450 to acquire a $2,000-lifetime customer is great; spending it on a $400 customer is slow bankruptcy.
Example: $60,000 spend ÷ 400 customers = $150 CAC.
FAQ
What is CAC in simple terms?
CAC only means something next to LTV — spending $450 to acquire a $2,000-lifetime customer is great; spending it on a $400 customer is slow bankruptcy.