CAC Payback Calculator
Find out how long a new customer takes to pay for the cost of winning them. Enter the customer acquisition cost, monthly revenue per customer, gross margin and, optionally, monthly churn. The calculator gives the simple payback period, the payback once churn is allowed for – some customers leave before they pay back – lifetime gross profit and the LTV to CAC ratio.
- Runs in your browser
- No sign-up
- Free to use
Under 12 months is considered strong for SaaS; 12–18 months is typical.
How to use CAC Payback Calculator
- Enter CAC.
- Enter monthly revenue per customer and margin.
- Add monthly churn.
- Read the payback period.
CAC Payback Calculator features
Margin-adjusted
Uses gross profit, not revenue.
Churn-adjusted
Realistic payback.
Lifetime profit
Gross profit ÷ churn.
LTV : CAC
Ratio shown.
Formula shown
Every result explains how it was calculated.
Any currency
Choose from 30+ currencies; amounts are formatted for it.
When to use CAC Payback Calculator
- SaaS unit economics.
- Deciding acquisition budgets.
- Investor metrics.
- Comparing channels.
CAC Payback Calculator FAQ
What is a good payback period?
Under 12 months is considered strong for SaaS; 12–18 months is common.
Why use gross margin?
Revenue includes the cost of serving the customer; only gross profit pays back acquisition.
Why does churn lengthen payback?
Customers who leave early never pay back their share of CAC.
How does this relate to cash flow?
Long payback periods mean growth needs more cash up front.
Payback and growth
Payback period links growth to cash: every new customer costs money now and repays it over months. The shorter the payback, the faster a company can reinvest in growth.
Annual upfront billing shortens cash payback dramatically.
Use consistent definitions over time: count customers and revenue the same way every month, separate one-off fees from recurring revenue, and compare cohorts rather than mixing old and new customers.
Benchmarks from other companies are only a rough guide, because business models, prices and customer types differ. Your own trend from month to month is usually more informative than a comparison with an industry average.