PPEXONIX

CAC Payback Calculator

CAC payback is how many months of gross profit it takes to earn back the cost of acquiring a customer. Shorter payback means growth needs less capital.

Your numbers

RESULT
CAC payback
11.5 mo
Monthly gross profit per customer
$78
Great — under 12 months.
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The formula, in plain English

  • CAC payback (months) = CAC ÷ (New MRR per customer × Gross margin %)
  • Benchmark: ≤ 12 months great, 12–18 good, > 24 concerning

Frequently asked questions

What is a good CAC payback period?

Under 12 months is excellent for SMB SaaS; enterprise companies with low churn can tolerate 18–24 months.

Why does payback matter more than LTV sometimes?

LTV depends on churn assumptions years into the future; payback tells you how quickly cash comes back, which drives how much you need to raise.

How do I shorten payback?

Raise prices or push annual prepayment, improve conversion rates, and shift spend to lower-cost channels such as referrals and content.

Results are estimates for planning and education — not financial, legal or tax advice.

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