SaaS CaC Ratio 2025
In today’s highly competitive software market, the financial metrics that drive SaaS business decisions have become increasingly sophisticated. Understanding where your company stands relative to these industry-specific metrics can mean the difference between sustainable growth and problematic cash burn in the rapidly evolving SaaS ecosystem.
Our recent industry research has revealed fascinating patterns across different sectors, with some verticals demonstrating remarkably efficient customer acquisition models while others face persistent challenges in balancing acquisition costs against lifetime customer value.
These benchmarks offer valuable context for executives making strategic decisions about marketing spend, sales resources, and overall go-to-market approaches.
What is SaaS CAC Ratio ?
SaaS CAC Ratio refers to the Customer Acquisition Cost Ratio in Software-as-a-Service businesses. It’s a critical metric that measures the relationship between how much a company spends to acquire new customers and the value those customers generate.
The CAC Ratio is typically calculated as:
CAC Ratio = Total Sales and Marketing Expenses / Total Number of New Customers
A lower CAC Ratio indicates better efficiency in customer acquisition. Generally:
- A CAC Ratio below 1 is excellent (spending less than one month’s revenue to acquire a customer)
- A ratio between 1-3 is considered sustainable
- A ratio above 3 may indicate inefficient customer acquisition strategies
Below we added a table of Customer Acquisition Cost (CAC) benchmarks and related metrics for SaaS (Software-as-a-Service) companies across different industries.
| SaaS Industry | Consumer ($) | SMB ($) | Middle Market ($) | Enterprise ($) |
|---|---|---|---|---|
| Agtech | 243 | 612 | 1823 | 6948 |
| Adtech | N/A | 560 | 2208 | 8548 |
| Automotive | 141 | 378 | 2655 | 6419 |
| Aviation & Defense | 290 | 509 | 3570 | 7990 |
| Building Management & IoT | 206 | 574 | 2109 | 7305 |
| Business Services | 228 | 585 | 4438 | 7247 |
| Chemical & Pharmaceutical | 275 | 816 | 3565 | 6018 |
| Cleantech | N/A | 674 | 2368 | 7321 |
| Construction | 165 | 610 | 4419 | 7920 |
| Design | 274 | 658 | 1501 | 5866 |
| eCommerce | 64 | 274 | 1406 | 2190 |
| Education | 264 | 806 | 2814 | 6659 |
| Entertainment | 178 | 473 | 2890 | 5216 |
| Engineering | N/A | 551 | 2383 | 5906 |
| Fintech | 202 | 1450 | 4903 | 14772 |
| Hospitality | 355 | 907 | 3724 | 9448 |
| Industrial | N/A | 542 | 3614 | 7290 |
| Insurance | 519 | 1280 | 4446 | 11228 |
| Legaltech | 161 | 299 | 2630 | 6441 |
| Oil & Gas | 91 | 355 | 3401 | 7885 |
| Medtech | 320 | 921 | 4326 | 11021 |
| Project Management | 227 | 891 | 2925 | 7430 |
| Proptech | 184 | 518 | 3004 | 8650 |
| Retail | 76 | 303 | 2980 | 9018 |
| Security | 174 | 805 | 5287 | 10221 |
| Staffing & HR | N/A | 410 | 1912 | 6754 |
| Telecommunications | 91 | 694 | 5266 | 10980 |
| Transportation & Logistics | 175 | 483 | 3920 | 8005 |
Source: FirstPageSage
This data highlights the importance of industry-specific benchmarking when evaluating SaaS business models and acquisition strategies, as the sustainable ratios and costs vary significantly across sectors.
Above data of SaaS CaC Ratio helps SaaS companies understand if their customer acquisition costs are in line with industry standards and if their business models are financially viable based on how these costs compare to the lifetime value their customers generate.
Industry CAC Variation
- Fintech has the highest CAC across segments: Particularly for enterprise customers ($14,772), Fintech companies face significantly higher customer acquisition costs than most other industries, likely due to complex sales cycles and regulatory requirements.
- Consumer-focused SaaS has much lower CAC: Most consumer-focused SaaS companies have CACs under $300, with eCommerce ($64) and Retail ($76) having the lowest acquisition costs.
- Clear scaling pattern across customer sizes: There’s a consistent pattern of increasing CAC as customer size increases, with enterprise customers typically costing 10-20x more to acquire than consumers in the same industry.
LTV Ratio Insights
LTV ratio compares the Lifetime Value of a customer to the cost of acquiring them. For SaaS businesses, a healthy LTV ratio is typically 3:1 or higher, meaning the lifetime value of a customer should be at least three times the cost to acquire them.
| SaaS Industry | LTV Benchmark | CAC Benchmark | LTV:CAC Ratio |
|---|---|---|---|
| Adtech | 6800 | 956 | 7:1 |
| Business Services | 2400 | 787 | 3:1 |
| Cybersecurity | 15500 | 3441 | 5:1 |
| Design | 5800 | 895 | 6:1 |
| Edtech | 7100 | 1431 | 5:1 |
| Entertainment | 4080 | 612 | 6:1 |
| Fintech | 11700 | 2496 | 5:1 |
| Industrial | 10800 | 3175 | 3:1 |
| Medtech | 16300 | 3665 | 4:1 |
| Pharmaceutical | 11200 | 2689 | 4:1 |
The ratios between 3:1 and 7:1, with Adtech having the strongest performance at 7:1 and Business Services and Industrial sectors at the lower end with 3:1.
- Adtech shows the strongest ratio: With a 7:1 LTV
ratio, Adtech companies are getting the most efficient return on their customer acquisition investments. - Business Services and Industrial sectors struggle with efficiency: Both show the lowest LTV
ratio at 3:1, suggesting these industries have more challenging unit economics. - Most industries maintain healthy ratios: The majority of industries show ratios between 4:1 and 6:1, which is generally considered sustainable in SaaS businesses.
Cost Structure Observations
- Healthcare-related SaaS has high CAC but strong lifetime values: Medtech, Pharmaceutical, and similar industries show high acquisition costs but correspondingly high LTV, maintaining viable business models.
- SMB market shows interesting value opportunities: The SMB segment shows moderate CAC ($300-$900 for most industries) while potentially offering better scaling prospects than consumer segments.
- Enterprise CAC varies dramatically by industry: From $2,190 in eCommerce to $14,772 in Fintech, suggesting very different go-to-market approaches and sales complexity.
Master Your SaaS Metrics, Maximize Your Growth: Partner with Eqvista Today
As the SaaS landscape continues to evolve in 2025, understanding your company’s SaaS CAC metrics relative to industry benchmarks is essential for sustainable growth. The significant variations across industries—from Fintech’s high acquisition costs to Adtech’s impressive 7:1 LTV ratio—highlight the importance of industry-specific strategies rather than one-size-fits-all approaches. Companies must regularly evaluate their customer acquisition efficiency against these benchmarks to remain competitive.
Eqvista’s comprehensive cap table management and valuation solutions can help SaaS founders track these crucial metrics alongside equity management, providing the financial clarity needed to make strategic decisions about growth investments.
Contact Eqvista today to ensure your growth strategy is built on sound financial metrics and industry-leading insights.
