SaaS & Startupadvanced
CAC Payback Period
Customer Acquisition Cost Payback Period
Definition
The time it takes to earn back the money you spent to win a customer.
Why it matters
A short payback period means you recover your marketing spend quickly, freeing up cash to grow faster.
Example
If it costs £120 to win a customer who pays £20 a month, your CAC payback period is six months.
Related terms
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