Client question · Budget and metrics

How do I calculate CAC for a SaaS company?

CAC looks simple and is easy to get wrong. A small change in what you include can halve or double the number.

Answered by the ShoutEx team · Updated October 2026 for 2027 planning
How clients ask it
  • What goes into CAC?
  • Should salaries be included?
  • What is blended CAC?
The ShoutEx answerSenior operators, no account managers
✓ Answer

Customer acquisition cost (CAC) is your total sales and marketing cost for a period divided by the number of new customers won in that period. Include salaries, commissions, ads, tools, agencies and contractors. Track a blended CAC for the whole business and a paid CAC per channel, and match the period to your sales cycle so costs and customers line up.

What to include in CACFully loaded CAC. ShoutEx view.
IncludeUsually exclude
Marketing and sales salaries, benefits, commissionsCustomer success and support
Ad spend, sponsorships, eventsProduct and engineering costs
Agencies, contractors, fractional leadersOnboarding costs after the sale
Marketing and sales toolsGeneral overhead (unless you allocate it everywhere)
Be consistent. A CAC that changes definition every quarter can't be compared.

Blended and paid CAC

Blended CAC uses all sales and marketing costs and all new customers. Paid CAC uses only the cost of a channel and the customers it brought. Blended tells you whether the business works. Paid tells you which channel to fund. You need both.

Match the period to the sales cycle

If deals take three months to close, this quarter's customers came from last quarter's spend. Use a lag or a rolling average so a big campaign doesn't look like a failure in the month it runs.

From CAC to decisions

CAC on its own says little. Divide it by gross-margin revenue per customer to get payback, and compare it with lifetime value. Those two numbers decide how much more you can spend.

Watch out for
  • Only ad spend in the numerator.
  • Counting free signups as customers.
  • No lag for long sales cycles.
  • Mixing segments with very different deal sizes.
  • Changing the definition each quarter.
Good signs
  • One written definition shared with finance.
  • Blended and paid CAC both tracked.
  • A rolling three-month view for long cycles.
  • CAC by segment where deal sizes differ.
  • CAC paired with payback in every report.
Stats, results and discussion

What founders and researchers say

We read the threads, surveys and reports so you don't have to. Each card is our summary, linked to the source.

For Entrepreneurs (David Skok)SaaS Metrics 2.0

Skok defines CAC as total sales and marketing cost divided by new customers, and pairs it with LTV and months to recover CAC.

Read the guide →
SaaS Capital1,000+ private B2B SaaS companies

Median private B2B SaaS spend is 8% of ARR on marketing and 15% on sales. Both belong in fully loaded CAC.

Read the benchmarks →
Redditr/SaaS

The most common correction in SaaS threads: founders leave salaries out of CAC, which can make it look several times better than it is.

Browse the threads →

Community summaries describe recurring themes across many threads. They are not quotes from individual posts.

Same question in your company?

Bring your numbers. We'll tell you what we would do, even if it isn't us.

Book a call →

Follow-up questions

Should CAC include the founder's salary?

If the founder spends real time selling, include a share. It keeps the number honest for when you hire.

How often should we calculate CAC?

Monthly for tracking, with a quarterly or rolling view for decisions.

What is a good CAC?

There is no single number. A good CAC is one you recover within your payback target on gross margin.

Similar questions