CAC payback period measures how many months it takes a company to recover the cost of acquiring a customer. SaaS teams usually calculate it on a gross-margin-adjusted basis so delivery costs are included.
Formula
CAC payback period = Customer acquisition cost / (New ARR x Gross margin / 12)
Shorter payback usually means more efficient acquisition, but the right benchmark depends on ACV, churn, sales cycle, and expansion. Read the cluster page: SaaS CAC payback benchmarks.
Related calculators: CAC Payback Period Calculator and CAC Calculator.