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Enterprise deal true CAC calculator

Calculate the true cost of acquiring an enterprise customer — allocating SDR and AE salaries proportionally to new deals, then compare against self-serve CAC to get a blended number.

Enterprise deal true CAC calculator

Sales team

Base + on-target variable, per rep

vs inbound routing, SMB, or non-enterprise

Base + on-target commission, per rep

vs renewals, expansion, SMB, or internal

Payroll taxes, benefits, equipment — typically 20–30%

CRM, Sales Nav, data tools, events — for enterprise motion

Pipeline

Total enterprise demos held per month across all AEs

Including lost deals. Inverse of close rate: 4 = 25% close.

Annual contract value per enterprise deal

Self-serve (optional)

Ads, content, SEO, PLG — excluding enterprise team

Results

Monthly enterprise cost

$0

SDR cost (allocated) $0
AE cost (allocated) $0
Overhead (25%) $0
Other tools & costs $0

Enterprise pipeline

Demos / mo 12
Close rate (implied) 25%
Closed deals / mo 3.0

Enterprise CAC

$0

CAC / ACV ratio 0.0×
CAC payback period 0 months

Self-serve

Self-serve CAC $300
Enterprise CAC is self-serve CAC

Blended CAC

$0

Total new customers / mo
Enterprise share

How CAC is allocated

The tool allocates each team's cost proportionally: if SDRs spend 80% of their time on enterprise outbound, only 80% of their OTE counts toward enterprise CAC. The same logic applies to AEs who split time between new deals and renewals. This allocation step is what makes this a "true" CAC — without it, upsell and renewal effort gets bundled into new-logo cost and inflates the number.

Closed deals per month = qualified demos ÷ demos per closed deal. This is a steady-state calculation — it assumes your pipeline is at full velocity. Early-stage enterprise teams with long ramp periods will see higher CAC while the pipeline fills. The sales cycle length is reflected in the CAC payback period rather than the CAC itself.

CAC payback = Enterprise CAC ÷ (ACV × gross margin ÷ 12). This is the months of gross profit needed to recover the cost of acquiring the customer. Under 12 months is best-in-class for enterprise SaaS; 12–18 months is healthy; beyond 24 months raises cash-efficiency concerns unless net dollar retention is very high.

About this tool

Allocate SDR and AE compensation (with overhead) to new enterprise acquisition using time allocation percentages, then divide by closed deals per month derived from your demo pipeline. Outputs true enterprise CAC, CAC payback period, optional self-serve CAC, and a blended CAC across both motions. Useful for understanding the real cost of an enterprise sales team and whether the ACV justifies it.

Frequently asked questions

What does "fully-loaded OTE" mean?

On-target earnings (OTE) is the total compensation a rep earns if they hit 100% of quota — base salary plus on-target variable (bonus or commission). Fully-loaded means you also include benefits, payroll taxes, and other per-head overhead (the "overhead %" field). A common rule of thumb is to add 20–30% on top of OTE to get fully-loaded cost.

Why does time allocation matter?

SDRs and AEs rarely spend 100% of their time on net-new enterprise acquisition. AEs handle renewals, upsells, SMB deals, and internal meetings. SDRs may route inbound leads or work on self-serve accounts. The allocation percentage splits the team's cost between new enterprise CAC (this tool) and everything else. If you don't adjust for allocation, you'll overstate enterprise CAC.

What is "demos per closed deal"?

The average number of full sales demonstrations or proposals a prospect requires before signing — across all opportunities, including losses. If you run 50 demos and close 10 deals, your demos-per-close is 5. This is the inverse of your close rate: 10 closes from 50 demos = 20% close rate = 5 demos per deal. Higher numbers mean a leakier funnel.

How is the CAC payback period calculated?

CAC payback = Enterprise CAC ÷ (ACV × gross margin ÷ 12). This is the number of months of gross profit needed to recover the acquisition cost. Under 12 months is excellent for enterprise SaaS; 12–18 months is typical; over 24 months is a cash-efficiency concern, though high net dollar retention can justify it.

What counts as "other monthly sales costs"?

CRM (Salesforce, HubSpot), sales engagement tools (Outreach, Salesloft), LinkedIn Sales Navigator, data enrichment (ZoomInfo, Apollo), intent data, trade shows and events, sales enablement software, and any other spend that supports the enterprise sales motion but isn't headcount. These are often underestimated — budget $500–1,500 per rep per month for a well-equipped enterprise team.

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