Jan 6, 2026
Payback Period
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Time required to recover customer acquisition cost through revenue. Critical for cash flow planning.
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Formula:
CAC ÷ Monthly Revenue per Customer
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Benchmarks
SaaS benchmark: 12-18 months acceptable. Under 12 months is strong. Over 24 months is concerning.
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Why It Matters
Payback determines cash requirements. $1,000 CAC with $100 monthly revenue = 10 month payback. Fast payback = reinvest quickly. Slow payback requires significant capital to grow. Investors watch this closely.
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