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The Internet Compass

Startup & SaaS

CAC Payback Period Calculator

Often more actionable than LTV:CAC because it doesn't depend on forecasting churn years into the future.

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CAC payback period
8 mo

Under 12 months is strong, 12–18 is workable, beyond 24 makes growth dependent on external capital.

How it works

  1. 1Enter CAC, average revenue per account and gross margin
  2. 2See the payback period in months

Who this is for

  • Assessing how fast a growth motion can self-fund
  • Comparing payback across acquisition channels
  • Setting a payback-period ceiling for new spend