CAC Payback Period

Definition

How many months of contribution it takes to recover the cost of acquiring a customer — the cash-flow twin of LTV:CAC.

Formula

Payback = CAC / (ARPU x Gross margin %)

Worked Example

CAC $150, monthly margin contribution $31.50:

Payback = $150 / $31.50 = 4.8 months

Interpretation & Pitfalls

<12 months healthy for SaaS; <6 excellent. Long payback means growth consumes cash even when LTV:CAC looks great.

In TupicFinance

Payback per channel highlights where acquisition spend returns fastest.