CAC payback
CAC payback is the time it takes for a business to recover the cost of acquiring a new customer through the revenue that customer generates.
CAC payback period measures how many months it takes to recoup the Customer Acquisition Cost from a new customer's gross profit contribution. A shorter payback period indicates a more capital-efficient growth model.
Example: A SaaS company spends $3,000 to acquire a customer who pays $200/month with a 75% gross margin ($150 gross profit per month). The CAC payback period is 20 months.
