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
- Monthly gross profit per customer
- $78
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- 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.