CAC Payback Period
CAC Payback Period tells you how many months it takes to recover what you spent acquiring a new customer. Divide your CAC by monthly recurring revenue, adjust for gross margin, and you get the number. Under 12 months is world-class. 12–18 months is healthy for most B2B SaaS. Over 24 months is a capital efficiency problem. To bring it down: lower acquisition costs, raise ACV, shorten your sales cycle, and invest in expansion revenue.