How Paddle Calculates and Benchmarks Customer CAC

Key Takeaways

1. Paddle calculates CAC as (Sales + Marketing Spend) / New Paying Customers, using only first paid transactions and excluding upgrades.
2. Use Paddle’s Reports section, total your acquisition expenses, and filter for new customers to calculate CAC with confidence.
3. Benchmarks for 2026: Bootstrap under $300 CAC, Growth $300-600, Scale under $900, with 3:1 or higher LTV:CAC ratios.
4. Validate CAC with payback periods under 90 days and channel improvements such as negative keywords for more efficient spend.
5. SaaSHero has delivered 10x CPL reductions and 650% ROI improvements, so book a discovery call with SaaSHero to improve your Paddle CAC.

Setup Requirements Before You Calculate CAC in Paddle

Confirm you have Paddle dashboard access, billing connected to your CRM (HubSpot or Salesforce), and at least 3-6 months of acquisition data. Paddle defines new customers as those completing their first paid transaction via billing events, and it excludes upgrades or expansions from existing accounts.

Plan for 30-60 minutes to complete the initial setup, then schedule weekly reviews. Treat this as an intermediate process with some risk from dark funnel attribution gaps, which can distort CAC if tracking is incomplete.

How Paddle Defines and Calculates CAC

Paddle calculates customer acquisition cost with a simple formula that divides total acquisition expenses by new paying customers in a chosen period. This keeps the calculation focused on net new acquisition instead of blended customer costs.

This formula isolates new customer acquisition costs and separates expansion revenue from initial acquisition metrics. That separation produces cleaner unit economics for growth planning and investor reporting.

Step-by-Step: Calculating CAC in Paddle

Step 1: Pull Acquisition Data from Paddle Reports

Open your Paddle dashboard and go to the Reports section. Use the Transactions Report to capture billed amounts and revenue details for your selected time frame.

Next, total all sales and marketing expenses for that same period. Include Google Ads, LinkedIn campaigns, sales team salaries, commissions, and marketing tools. For example, your total Q1 acquisition expenses might equal $50,000.

Step 2: Filter for New Customers Only

In Paddle’s customer reporting, filter for “New” customers by selecting those with their first paid transaction in your measurement period. This keeps your CAC tied to true first-time buyers.

ProfitWell Metrics integration automatically tracks these acquisition events and removes upgrades or expansions from existing accounts. Confirm a sample of transaction IDs to validate that your new customer count is accurate.

Step 3: Apply the CAC Formula to Your Paddle Data

Divide your total acquisition costs by the number of new customers to get your Paddle CAC. Using the earlier example, $50,000 in total expenses divided by 100 new customers results in a $500 CAC.

Keep this calculation focused on paying customers only. Exclude free trial users who have not converted to paid status within your chosen period, or you will understate your true CAC.

Step 4: Compare Your CAC to 2026 Benchmarks

Compare your calculated CAC to current benchmarks that reflect your company stage and growth phase. This context shows whether your acquisition engine runs efficiently or needs immediate work.

Current benchmarks show median LTV:CAC ratios hitting 3.6:1 across 936 analyzed companies, and ratios below 2:1 signal immediate sustainability issues.

Step 5: Validate CAC and Improve Your Channels

Keep your CAC payback period under 90 days while you maintain healthy LTV ratios. Shorter payback periods free up cash for faster reinvestment and reduce financing pressure.

Track performance by channel to find your most efficient acquisition sources. Effective tactics include adding negative keywords for navigational searches and shifting budget toward high-intent competitor comparison terms. High CAC hurting your unit economics? SaaSHero cuts CPL by 10x, so book a discovery call.

How to Measure and Validate CAC Over Time

Strong performance shows up as CAC below benchmark thresholds, LTV:CAC ratios above 3:1, and payback periods under 80 days for optimal capital efficiency. These metrics confirm that your acquisition engine supports sustainable growth.

Connect Paddle data to Looker Studio or similar tools to monitor Net New ARR and pipeline attribution on a recurring basis. Deeper CRM integration then fills attribution gaps that Paddle’s native reporting cannot fully cover.

Advanced CAC Analysis for Paddle Power Users

Advanced CAC analysis tracks retention cohorts so you can calculate blended CAC across full customer lifecycles. This approach ties acquisition costs to long-term value instead of just first purchases.

Multi-touch attribution models then reveal which channels and touchpoints contribute most to conversions and revenue. SaaSHero’s competitor conquesting strategies have delivered 650% ROI improvements for clients like TripMaster through precise targeting and focused landing page improvements. Need advanced Paddle strategies? Book a discovery call with SaaSHero.

SaaSHero Case Studies Proving CAC Impact

SaaSHero has produced measurable CAC improvements for B2B SaaS companies using specialized acquisition strategies. TestGorilla reached an 80-day payback period through targeted competitor conquesting campaigns and refined keyword strategy.

Playvox achieved a 10x decrease in cost per lead after account restructuring and aggressive negative keyword implementation. SaaSHero provides senior-led management with flat retainers and no percentage-of-spend traps, which keeps incentives aligned with efficient, sustainable growth.

Summary and Practical Next Steps

Follow Paddle’s five-step CAC process by aggregating costs, identifying new customers, applying the formula, benchmarking against 2026 standards, and validating with payback analysis. This workflow gives you a clear, repeatable way to track acquisition efficiency.

If your CAC sits above benchmark ranges, treat that as a signal for immediate optimization to protect your unit economics. Connect CAC analysis with LTV calculations so your growth planning reflects both acquisition cost and long-term value. Ready to scale with SaaSHero’s month-to-month expertise? Book a discovery call.

FAQ

What is good CAC for Paddle SaaS companies in 2026?

Good CAC in 2026 depends on company stage, with bootstrap companies targeting under $300, growth-stage companies aiming for $300-600, and scale companies keeping CAC below $900. Early-stage B2B SaaS companies should generally aim for CAC under $400 to support sustainable unit economics and attractive investor metrics.

How do I calculate CAC directly in the Paddle dashboard?

Open Paddle’s Reports section and use the Transactions Report to gather revenue data for your chosen period. Aggregate your sales and marketing expenses for that same window, then filter customers for “New” acquisitions.

Divide total acquisition costs by the number of new paying customers from Paddle billing events. The formula stays simple, with total acquisition spend divided by new paying customers.

What are the latest Paddle CAC benchmarks for 2026?

Benchmarks for 2026 show bootstrap SaaS companies averaging under $300 CAC, growth companies between $300-600, and scale companies under $900. Channel-level benchmarks across B2B SaaS include PPC at $619, content marketing at $533, and email marketing at $53 per acquisition.

What CAC to LTV ratio should Paddle users target?

Paddle users should target minimum LTV:CAC ratios of 3:1 for sustainable growth, with 4:1 or higher preferred for bootstrap companies. Ratios below 2:1 indicate sustainability problems that require immediate optimization.

Top-performing channels such as organic SEO often reach 6:1 ratios, while paid social typically delivers around 1.8:1 ratios, which may require tighter targeting or better conversion paths.

What is the ideal CAC payback period for Paddle SaaS companies?

Ideal CAC payback periods for Paddle SaaS companies range from under 80 days for optimal capital efficiency to a maximum of 90 days for sustainable growth. These short windows keep cash cycling quickly.

Early-stage companies often target 12-18 month payback periods, while growth-stage companies should move toward 6-12 month recovery timeframes to maintain investor confidence and stable cash flow.