CAC & Payback - Deepstash

CAC & Payback

Customer acquisition cost (Cac) is the sum of all sales and marketing spending divided by the number of new customers in a given time period. It also allows you to calculate how long it will take to turn a customer breakeven when you subtract one-time revenues and divide it by the Mrr (I.E. Payback-time) a good Saas business model is driven by a Cltv that exceeds the Cac significantly (at least 3 times)

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