Industry benchmarks for HR and Recruitment SaaS
HR and recruitment software targets a 13 month payback, reflecting mid-market sales cycles and multi-stakeholder buying between HR, finance, and IT. CAC runs $2,500 to $7,000 per account including demos, security review, and the procurement cycle that follows. ARPU sits at $250 to $700 per month on per-employee or per-seat pricing at 72 to 82 percent margin after job board integrations, background check pass-through, and support. At $4,200 CAC and $312 in monthly gross profit, payback is 13.5 months, with monthly churn of 1.5 to 2.5 percent.
Headcount growth inside existing customers is the LTV lever, and it cuts both ways. Per-employee pricing means your revenue expands automatically as customers grow, but it also contracts during hiring freezes and layoffs, which is why HR SaaS net revenue retention is more cyclical than most categories. Module attach into onboarding, performance, or payroll is the more controllable expansion path, since it is independent of your customer headcount. Track seat-based contraction separately from logo churn, because a year of flat headcount across your base can flatten growth even with near-zero cancellations.
Frequently asked questions
CAC Payback Estimator for HR and Recruitment SaaS, answered.
How does per-employee pricing affect LTV?
It ties your revenue to customer headcount, producing automatic expansion in growth years and automatic contraction in downturns. Model both directions rather than assuming steady expansion.
Should background check or job board costs be in COGS?
Yes, if you resell or pass them through. They are variable costs of revenue and typically pull gross margin down from the mid 80s into the mid to high 70s.
What is the biggest CAC driver in HR SaaS?
Sales cycle length. HR, finance, IT, and legal all touch the decision, and each added stakeholder extends the cycle and the cost per win.