Skip to content
The Internet Compass

Metrics

CAC Payback Period

CAC payback period is the number of months of gross profit from a new customer needed to recover their acquisition cost.

Under twelve months is strong, twelve to eighteen is workable, and beyond twenty-four months growth becomes structurally dependent on outside funding.

Payback period is often more actionable than LTV:CAC because it does not depend on forecasting churn years into the future.