3min chapter

The Role Forward: A Strategic Finance Podcast cover image

CAC Masterclass: The SaaS CFO, Ben Murray

The Role Forward: A Strategic Finance Podcast

CHAPTER

How to Calculate Your CAC Payback Period

CAC payback period seems to be one where people just are not in full agreement. I view CAC like debt, you know, so we put down this money and now it's being paid back over time. And that's why they say churn is a sass killer because if you have poor retention, you're losing customers sometimes before they pay back CAC. Now you're relying on new customers to fund both those previous and the CAC for that customer. That's where it just snowballs.

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