How SaaS Companies Can Calculate (and Reduce) Their CAC Payback Period
FastSpring
OCTOBER 25, 2019
Tunguz looks at a hypothetical SaaS company making $625k in Annual Recurring Revenue (ARR), and it’s growing at 15% a month. This is the simplest way to calculate your CAC Payback Period: Take your CAC, and divide them by your Monthly Recurring Revenue (MRR), minus your Average Cost of Service (ACS). Let’s use an example.
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