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Payback Period

By Dan Kurtz 1 min read

Payback period is the number of months it takes for a customer’s gross profit to equal the cost of acquiring them. Short payback periods let a business grow with less capital; long ones require more.

Best-in-class SaaS businesses run payback periods under 12 months. B2B services businesses often see much faster payback because contract sizes are large relative to CAC.

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