New CAC Ratio
S&M expense attributable to new-customer acquisition divided by the new-customer CARR generated in the period. Per SMSB, the cleanest read on the new-logo acquisition engine's efficiency — strips out the expansion motion which has materially different unit economics. Common pitfall: failing to split AE comp time correctly between new and expansion activities — when the same AE owns both motions, an allocation rule (often the % of OTE tied to new-vs-expansion quota) is required and must be applied consistently quarter-over-quarter. — Sales KPI anchored to SaaS Metrics Standards Board.
Rogue ID: sales.new_cac_ratio
Type: Number
Domain: Sales
Definition
S&M expense attributable to new-customer acquisition divided by the new-customer CARR generated in the period. Per SMSB, the cleanest read on the new-logo acquisition engine's efficiency — strips out the expansion motion which has materially different unit economics. Common pitfall: failing to split AE comp time correctly between new and expansion activities — when the same AE owns both motions, an allocation rule (often the % of OTE tied to new-vs-expansion quota) is required and must be applied consistently quarter-over-quarter.
Formula
New CAC Ratio = (S&M spend allocated to new-customer acquisition in period) / (New-customer CARR generated in period). Per SMSB §New CAC Ratio: spend allocation must follow a documented rule (e.g. fraction of S&M headcount tied to new-business quota) applied consistently.Why it matters
Isolates the new-logo engine — when blended CAC Ratio is moving, this is the first line of split-out diagnosis. Boards use it to evaluate whether to invest more in acquisition or shift weight toward expansion.
How to interpret
Per SMSB convention, New CAC Ratio of 1.0–2.0 is the typical mid-stage SaaS band; > 2.5 sustained signals the new-logo motion is structurally expensive (often a fit problem with target segment). Should be ≥ Blended CAC Ratio (new-logo is always more expensive than expansion); if New CAC Ratio < Blended, the spend allocation between new and expansion is mis-tagged.
Related KPIs
sales.blended_cac_ratiosales.expansion_cac_ratiosales.cacsales.cac_payback_periodsales.new_businesssales.carr
Source
SaaS Metrics Standards Board · section: New CAC Ratio — published 2023-01-01.
Why does this cite SaaS Metrics Standards Board? Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.
Metric definitions reference standards published by the SaaS Metrics Standards Board (saasmetricsboard.com). imboard is not affiliated with, endorsed by, or a member of SMSB.
Stage relevance
| Company stage | Priority |
|---|---|
| Series A | Recommended |
| Series B | Recommended |
| Series C+ | Recommended |
| Public | Recommended |
Suggested for stages: Series A, Series B, Series C+, Public.
Default owning functions
- Sales
- Finance
Machine-readable
- This KPI as JSON:
/api/ontology/sales/new_cac_ratio.json - All Sales KPIs:
/api/ontology/sales.json - Full catalog:
/api/ontology/index.json
Growth Rate (YoY)
Year-over-year percentage growth in ARR (or recognized revenue, if explicitly anchored) — comparing the current period to the equivalent period 12 months prior. The single most-watched investor metric and the largest single driver of SaaS valuation multiples. Common pitfall: comparing to the prior quarter (QoQ) and reporting it as "growth rate" — boards and investors mean YoY unless explicitly noted otherwise. Anchored to KBCM/Sapphire SaaS Survey 2024 §YoY ARR Growth for cross-company benchmarking. — Sales KPI anchored to KBCM/Sapphire SaaS Survey 2024 (15th Annual).
HR KPIs
Headcount, hiring, attrition, compensation. 4 industry-backed KPIs, each anchored to a third-party standard.