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CAC Payback Period Calculator

Free Calculator

Turn CAC, ARPU and gross margin into the number of months it takes to earn back what you spend to win a customer.

100% private

Runs in your browser — no numbers leave your device.

Your numbers

$

Cost to acquire one customer.

$

Average revenue per customer, per month.

%

Share of revenue left after direct costs.

CAC payback period

7.5 mo

Months of gross margin to earn back CAC — under ~12 months is healthy for SaaS.

Monthly gross margin / customer

US$40

ARPU × gross margin.

How it works

1

Enter your CAC

Total sales & marketing spend divided by customers won.

2

Add monthly ARPU

Average recurring revenue per customer, per month.

3

Add gross margin

The percentage of revenue left after direct costs.

4

Read the payback

Your CAC payback period in months updates live.

Win customers with creative that converts

Reverze rebuilds your App Store screenshots into higher-converting creative — lowering CAC and shortening payback.

What is a CAC payback period and how do you calculate it?

Your CAC payback period is the number of months it takes to recover the cost of acquiring a customer from the gross margin they generate. The formula is simple: CAC ÷ (monthly ARPU × gross margin). This CAC payback period calculator does the maths instantly — enter what you spend to win a customer, their monthly revenue and your gross margin, and you get the payback in months.

The shorter the payback, the faster you recycle cash into growth. As a rough SaaS benchmark, under 12 months is healthy, 12–18 months is workable for higher-priced or enterprise products, and beyond 18 months your acquisition is straining cash flow. Lowering CAC — often by optimising the creative that drives installs — is the fastest way to shorten payback, and exactly what Reverze helps with.

Frequently asked questions

How do you calculate CAC payback period?
Divide CAC by the monthly gross margin per customer (ARPU × gross margin). For example, £300 CAC ÷ (£50 ARPU × 80% margin = £40) = 7.5 months. This calculator does it instantly.
What is a good CAC payback period for SaaS?
Under 12 months is generally healthy for SaaS. 12–18 months can be acceptable for enterprise or higher-ACV products, while beyond 18 months usually signals CAC is too high or pricing is too low.
Why use gross margin instead of full revenue?
Only the margin left after direct costs (hosting, support, payment fees) is real cash that pays back acquisition. Using raw revenue overstates efficiency and hides your true payback period.
How do I shorten my CAC payback period?
Lower CAC, raise ARPU, or improve gross margin. The quickest lever is usually acquisition efficiency — better App Store screenshots and copy convert more of the same traffic, cutting CAC and shortening payback.