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CAC Payback Period

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CAC Payback Period

What is the CAC Payback Period

The CAC Payback Period is the number of months required to pay back the upfront customer acquisition costs after accounting for the variable expenses to service that customer. CAC Payback Period equals CAC divided by the gross margin dollars generated by that customer.

How to Calculate the CAC Payback Period

CAC Payback Period formula
CAC Payback Period Formula

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Download the CAC Payback Period slides below

Additional Resources

Check out the in-depth post at The SaaS CFO – CAC Payback Period