Search tools

Search for a command to run...

CAC & Payback Period Calculator

Calculate customer acquisition cost (CAC) from sales and marketing spend, and how many months it takes to earn it back from a customer's gross margin.

How to use

  1. 1Enter sales and marketing spend for a period and the new customers won.
  2. 2Enter average monthly revenue per customer and gross margin.

How it's calculated

CAC = (sales + marketing spend) ÷ new customers. Payback (months) = CAC ÷ (monthly revenue per customer × gross margin).

Frequently asked questions

What's a good CAC payback period?

For many SaaS businesses, under 12 months is considered healthy; enterprise sales can justify 18–24 months.

What costs belong in CAC?

Advertising, sales and marketing salaries and commissions, tools and agencies — everything spent to win new customers.

Should I use revenue or margin?

Gross margin — it reflects the money actually available to repay acquisition costs.