CAC Payback Period Calculator
Months to recover customer acquisition cost
How long until a new customer pays for the cost of acquiring them? Enter your CAC, the monthly revenue each customer brings and your gross margin to get the payback period in months.
Why payback period matters
CAC payback period is how many months of gross profit it takes to recoup what you spent acquiring a customer: CAC ÷ (monthly revenue × gross margin). A $300 CAC against $50/month at 80% margin pays back in 7.5 months. Shorter is better — it frees up cash to reinvest in growth. Many SaaS businesses aim for under 12 months; under 6 is excellent. It pairs with the LTV:CAC ratio: payback measures speed, the ratio measures total return.
CAC Payback Period Calculator: frequently asked questions
How is CAC payback period calculated?
Divide CAC by the monthly gross profit per customer (monthly revenue × gross margin). A $300 CAC and $40 monthly gross profit is a 7.5-month payback.
What's a good CAC payback period?
Many SaaS companies target under 12 months; under 6 months is considered excellent. Shorter payback means faster cash recovery to reinvest in growth.