Source: https://www.revvly.ai/glossary/cac-payback

[Glossary](https://www.revvly.ai/glossary)

# 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](https://www.revvly.ai/blog/saas-payback-period-benchmarks-by-stage)
- [SaaS unit economics: the framework that tells you if the model works](https://www.revvly.ai/blog/saas-unit-economics)

## Related terms

- [Customer lifetime value (LTV)](https://www.revvly.ai/glossary/ltv)
- [Average revenue per account (ARPA)](https://www.revvly.ai/glossary/arpa)

Revvly

Orchestrate the flow of revenue.

© 2026 AcceleratorApp Limited. All rights reserved.