Global SaaS metric
SaaS CAC Calculator
Divide sales and marketing spend by new customers to get CAC.
CAC
$500.00
Customer acquisition cost (CAC) explained
Why CAC matters for SaaS
Customer acquisition cost measures how much you spend in sales and marketing to win one new paying customer. It is the denominator in the LTV:CAC ratio — one of the most cited SaaS health metrics.
CAC should include fully loaded S&M spend: ad platforms, agency fees, sales salaries and commissions, marketing tools, and content production allocated to acquisition (not brand-only campaigns unless they drive signups).
Interpreting your result
Lower CAC is not always better if it comes from low-quality leads that churn quickly. Compare CAC to LTV and payback period together.
Segment CAC by channel when possible. Paid search, outbound sales, and product-led growth often have very different costs and conversion timelines.
- B2B SaaS with $10k+ ACV often accepts higher CAC with longer sales cycles.
- Self-serve PLG products typically target CAC payback under 12 months.
- Divide quarterly S&M by new customers in the same quarter for cleaner cohort math.
Frequently asked questions
- ?Should I use logo CAC or revenue-weighted CAC?
- Logo CAC (spend ÷ new customers) is standard for unit economics. Revenue-weighted CAC divides spend by new ARR, which helps when deal sizes vary widely.
- ?Do free trials count as new customers?
- Only count customers who convert to paid unless you are explicitly measuring trial CAC. Define the metric consistently across your team.