The fully-loaded cost of acquiring one new paying customer — sales, marketing, tools, and headcount included. Plain-language explainer with examples.
The fully-loaded cost of acquiring one new paying customer — sales, marketing, tools, and headcount included.
CAC is total sales-and-marketing spend divided by new customers acquired in the same period. 'Fully loaded' means including salaries, ad spend, tooling, agency fees, and demo/onboarding cost — not just paid media.
The number matters most as a ratio: LTV:CAC (target 3× or better at maturity) and CAC payback in months (target <18 months for SaaS, faster for lower ACV). A short CAC payback is often more compelling to investors than a high LTV — it means the model self-funds growth.
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