CPR
CAC Payback Period
The SaaS Metric CAC Payback Period is the number of months it takes to earn back the money invested in acquiring customers. It shows your break even point. This metric often goes by Time to Recover CAC or Months to Recover CAC. [1]
The general benchmark for startups to recover CAC is 12 months or less. High performing SaaS companies have an average CAC payback period of 5-7 months. Larger enterprises can (and often do) have a longer CAC Payback Period since they have greater access to capital. [2]
[1] Murray, B. How I Calculate the CAC Payback Period - The SaaS CFO. Retrieved May 21, 2021, from https://www.thesaascfo.com/cac-payback-period/
[2] Geckoboard. Retrieved May 21, 2021, from https://www.geckoboard.com/best-practice/kpi-examples/cac-payback-period/
[3] Retrieved May 21, 2021, from https://www.key.com/kco/images/2020_KBCM_SaaS_Survey_8102020.pdf