CAC Payback Period
How many months of gross profit it takes to recover the cost of acquiring a customer.
CAC payback is acquisition cost divided by monthly gross profit per customer. It answers how long the company's cash is tied up before a customer becomes profitable.
Under 12 months is generally considered investment-ready; under 6 is strong. Above 18 the business needs substantial working capital just to grow, which constrains how fast it can move.
Payback period often matters more than LTV/CAC in practice, because it speaks directly to cash. A great ratio with a 24-month payback still means running out of money while growing.