Enterprise Sales CAC Recovery Calculator
Simulate fully loaded Account Executive costs, legal review expenses, and multi-year enterprise contract LTV.
Parameters & Config
Average monthly subscription fee billed per active customer
Percentage of customers cancelling their subscription each month
Total sales and marketing expenditure required to acquire one customer
Percentage of subscription revenue retained after hosting and direct support costs
Total gross profit generated per customer over their active lifecycle
Benchmark metric for SaaS efficiency (Ideal: 3.0x to 5.0x)
Key Metrics & Sub-Totals
3 itemsCalculation Summary & Unit Breakdown
| Metric | Calculated Value | Notes / Logic |
|---|---|---|
| Monthly ARPU (Revenue/User) | $3500.00 | Per user/month |
| Monthly Churn Rate | 0.8% | Customer attrition |
| Gross Margin Percentage | 85% | Cost of service deducted |
| Customer Lifespan | 125 months | 1 / Churn rate |
| Customer Acquisition Cost (CAC) | $28000.00 | Blended marketing + sales |
| Customer Lifetime Value (LTV) | $371875.00 | Total gross profit per customer |
| LTV to CAC Health Ratio | 13.28x | Benchmark: >3.0x |
| CAC Payback Period | 9.4 months | Benchmark: <12 months |
| Net LTV Profit Contribution | $343875.00 | LTV minus CAC |
Overview & Methodology
High-touch enterprise software sales involve 3 to 9-month sales cycles, pilot deployments, legal MSA reviews, and dedicated sales engineers. Calculating fully loaded CAC recovery ensures sales compensation remains aligned with bottom-line cash flow.
Mathematical Formulation
Enterprise Payback = Fully Loaded CAC / (Monthly Gross Revenue × Gross Margin %).Optimization Best Practices
Include security questionnaire and legal redlining costs into your fully loaded enterprise CAC calculation.
Require multi-year lock-in (24 or 36 months) when discounting first-year implementation fees.
Target an LTV:CAC ratio above 4.0x to accommodate long enterprise procurement cycles.
Frequently Asked Questions
Q.How much is the LTV on a $42,000/year ($3,500/mo) enterprise account with 0.8% churn?
Monthly gross profit is $2,975 (85% margin). Divided by 0.008 churn, LTV is $371,875.00 over an average 125 month lifespan.
Q.What is the CAC payback on a $28,000 acquisition cost?
The $28,000 fully loaded CAC is recovered in 9.4 months ($28,000 / $2,975).
Q.What is included in fully loaded enterprise CAC?
AE salaries, SDR bonuses, travel & entertainment expenses, sales enablement software (Salesforce, ZoomInfo), and legal review retainers.