Time to Payback CAC Calculator
Calculate and analyze your customer acquisition cost payback period
Business Metrics
From Payback Analysis to Profitable Growth
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What's the fastest way to shorten CAC payback periods for B2B companies?
Cold email outreach delivers the lowest acquisition costs and fastest payback periods compared to paid advertising, often achieving 3-6 month payback windows. Reduce your CAC with cold email →
How do I calculate CAC payback period for my business?
Divide your customer acquisition cost (CAC) by your monthly recurring revenue per customer multiplied by gross margin percentage. For example, if CAC is $600, MRR is $50, and gross margin is 80%, your payback period is 15 months ($600 ÷ ($50 × 0.8)).
What is considered a good CAC payback period?
Generally, 12 months or less is considered excellent, 12-18 months is acceptable, and over 24 months may indicate inefficient customer acquisition. However, this varies by industry, customer type, and business model - enterprise customers often justify longer payback periods.
Why is CAC payback period important for SaaS businesses?
It measures how long you must wait before a customer becomes profitable, affecting cash flow and growth potential. Shorter payback periods mean faster reinvestment in growth, while longer periods tie up working capital and increase churn risk.
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Achieve 3-6 month payback periods using targeted cold email campaigns that convert prospects into recurring revenue faster
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Accelerate Your CAC Payback with Smart Outreach
Cold email delivers the fastest payback periods in B2B – turn your acquisition cost analysis into profitable customer relationships