Glossary · Sales efficiency
CAC payback period
How many months of gross profit it takes to earn back what you spent to acquire a customer. Shorter payback means less cash tied up growing.
Related: Customer acquisition cost (CAC) · Lifetime value (LTV) · Monthly recurring revenue (MRR)
A bit more nuance▾
- SaaS benchmarks vary by segment and ACV.
- Very long payback can work if retention is exceptional — but it strains cash.
Go deeper▾
Discussion questions▾
- Would you rather improve payback or LTV first?
- What would break your payback math if churn ticked up 2 points?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.