Metrics
CAC Payback
Quick definition
Number of months to recover CAC from gross profit.
CAC Payback = CAC / (MRR × Gross Margin). Measured in months. Best-in-class SaaS is under 12 months; under 18 is healthy; over 24 is a red flag.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
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