// Metrics

CAC Payback

Months of gross profit required to recover the CAC of a new customer.

In depth

CAC Payback is the working-capital metric that matters more than LTV:CAC for scaling businesses, because it dictates how much cash you need to grow. Best-in-class SMB SaaS: <12 months. Enterprise: <24 months.

Related terms

CAC

Customer Acquisition Cost, fully-loaded S&M spend divided by new customers acquired in the period.

LTV

Lifetime Value, the gross-profit-weighted expected revenue from a customer over their lifetime.

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