Customer Acquisition Cost (CAC) for SaaS at Series A
About This Metric
Total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.
Lower is better · Unit: currency
How to Improve
Ehsan's Analysis
SaaS CAC is the most lied-about metric in board decks. Most founders calculate it as marketing spend ÷ new customers, which excludes sales salaries, SDR costs, tooling, and the CEO's time on sales calls. When you include fully-loaded costs, the real CAC is typically 2-3x the reported number. Bessemer's cloud index shows median SaaS CAC of $1.28 for every $1 of ACV — meaning most companies spend more to acquire a customer than that customer pays in year one. The companies with genuinely low CAC (Atlassian at $0.50, Zoom pre-COVID at $0.33) share one trait: self-serve onboarding with a product that sells itself. If your product requires a demo, your CAC floor is roughly $800 for SMB and $15,000+ for enterprise — no amount of marketing optimization changes this structural reality.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations