Unit Economics

What is a Good CAC Payback Period Benchmark?

Updated: November 27, 2025 | Source: Optifai Unit Economics Study 2025 (N=356)

TL;DR

CAC Payback Period benchmarks 2025: Best-in-class <12 months, Good 12-18 months, Concerning 18-24 months, Critical >24 months. B2B SaaS median: 15 months. By segment: SMB 8-12 months, Mid-Market 14-18 months, Enterprise 18-24 months. Venture-backed companies target <18 months for capital efficiency. Formula: CAC / (ARPU × Gross Margin). Source: Optifai Unit Economics Study 2025 (N=356 companies).

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CAC by Channel LTV Benchmark Churn Rate Benchmark Methodology

Key Data

Payback Period by Health

Best-in-class: <12months
Good: 12-18months
Concerning: 18-24months
Critical: >24months

Source: Optifai Unit Economics Study 2025

Updated: 2025-11-27

Payback by Segment

SMB (ACV <$15K): 8-12months
Mid-Market ($15-100K): 14-18months
Enterprise (>$100K): 18-24months
Median (All): 15months

Source: Optifai Unit Economics Study 2025

Investor Expectations

Seed/Series A: <12months
Series B/Growth: <18months
Late Stage: <24months
Public Company: <18months

Source: SaaS Capital, OpenView 2025

Formula Components

CAC (numerator): $12Kavg
Monthly ARPU: $1,000avg
Gross Margin: 80%typical
Result: 15months

Source: Formula: CAC / (ARPU × GM)

The CAC Payback Formula

CAC

÷(

Monthly ARPU

Gross Margin

Months

Example Calculation

CAC

$12,000

Monthly ARPU

$1,000

Gross Margin

80%

Payback

15 months

$12,000 ÷ ($1,000 × 0.80) = $12,000 ÷ $800 = 15 months

Levers to Improve CAC Payback

↓Reduce CAC

Improve lead quality (better targeting)
Shorten sales cycles (faster qualification)
Enable self-serve / PLG motion
Optimize sales team productivity

↑Increase Revenue per Customer

Raise prices (if value supports it)
Improve packaging (tiered plans)
Add expansion revenue paths
Reduce discounting

Warning Signs

Payback > Customer Lifetime: If average customer churns before paying back CAC, your unit economics are broken.
Payback Increasing QoQ: Rising payback period indicates efficiency problems that will compound.
CAC Rising Faster Than ARPU: Common during aggressive growth phases, but unsustainable long-term.
Heavy Discounting to Close: Discounts extend payback and often attract lower-quality customers.

About This Data

This benchmark is based on anonymized financial data from 356 B2B SaaS companies collected in 2025. Data is segmented by company size, ACV, and funding stage to ensure relevant comparisons.

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Update History

Data last updated: November 27, 2025

v1.0November 27, 2025

✓Initial publication with CAC payback benchmarks from 356 companies
✓Added segment breakdown (SMB, Mid-Market, Enterprise)
✓Included investor expectations by funding stage
✓Added formula explanation with example calculation

Impacted metrics:

CAC payback period

Regularly updated with latest industry data