CAC payback period
Also: CAC payback, payback period
CAC payback period is the number of months of gross profit from a new customer needed to recover what it cost to acquire them. A shorter payback means faster recovery and lower funding needs. It is a practical check on go-to-market efficiency that avoids the long-horizon assumptions in lifetime value.
Formula
CAC payback (months) = customer acquisition cost ÷ (new MRR × gross margin)
How to read it
Use gross-margin-adjusted revenue so the answer reflects profit, not just sales. Compare payback by channel and segment: a blended figure can hide a profitable channel subsidising an expensive one.
Further reading
- SaaS payback period: how to calculate it and what's healthy by stage
- SaaS unit economics: the framework that tells you if the model works