CAC Payback Period: $10,000 CAC, $1,000 ARPU, 65% Margin
Calculate the payback period for large enterprise deals with a $10,000 CAC and $1,000 monthly revenue per customer.
How to use this tool
- Enter customer acquisition cost (cac), monthly revenue per customer (arpu) and gross margin in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your payback period and the full breakdown beneath it.
Large enterprise deals come with high acquisition costs, but when ARPU is substantial the CAC payback period can still fall within an acceptable range for investors.
Frequently asked questions
- What is a good CAC payback period?
- Best-in-class SaaS companies target 12 months or less. 12–18 months is acceptable for enterprise sales. Above 24 months is a warning sign — it takes too long to recover acquisition costs, which strains cash flow.
- Why include gross margin in the payback calculation?
- Because not all revenue is profit. If your ARPU is $100 but you spend $60 on hosting and support (40% margin), you only recover $40/month toward CAC. Including gross margin gives a more accurate cash-recovery picture.