CAC Payback Calculator

Calculate CAC payback period using CAC, ARPA, and gross margin. Share results via URL and track improvements over time.

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How to interpret the result

Use gross profit (not revenue) for payback to reflect true unit economics.
If payback is high, focus on activation, retention, and GTM conversion to improve cash efficiency.

FAQ

Should payback use gross margin?: Yes—CAC should be recovered from gross profit, not revenue.
What’s a good payback period?: It depends on motion and ACV. Many PLG businesses target <12 months; sales-led may tolerate 18–24+ months with strong retention.

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