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  3. CAC Payback
GLOSSARY DEFINITION • SAAS PLATFORMS

Customer Acquisition Payback (CAC Payback)

The number of months required for subscription gross profit to fully recover the sales and marketing investment spent acquiring that account.

CAC Payback FORMULA & STANDARD
CAC Payback (Months) = Blended CAC ÷ (Monthly Recurring Revenue × Gross Margin %)

₹1,20,000 CAC ÷ (₹15,000 MRR × 80% margin) = 10 months payback

01 / DEFINITION & SIGNIFICANCE

Why CAC Payback matters for SaaS Platforms

The number of months required for subscription gross profit to fully recover the sales and marketing investment spent acquiring that account.

Payback velocity governs how aggressively a SaaS company can deploy capital. A payback period under 12 months allows continuous reinvestment in paid search, LinkedIn campaigns, and SEO without debt.

02 / THE CALCULATION BLUEPRINT

How to track and calculate CAC Payback

CAC Payback (Months) = Blended CAC ÷ (Monthly Recurring Revenue × Gross Margin %)

₹1,20,000 CAC ÷ (₹15,000 MRR × 80% margin) = 10 months payback Tracking this metric systematically inside your analytics stack eliminates guesswork and aligns marketing spend with true business outcomes.

03 / INDUSTRY BENCHMARK MATRIX

Typical CAC Payback benchmarks by segment

Segment / Business Model Typical Range DesignScript Target
SMB SaaS Accounts6 – 12 Months< 9 Months
Mid-Market SaaS Accounts10 – 16 Months< 12 Months
Enterprise Accounts ($50K+ ACV)14 – 20 Months< 15 Months
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