CAC payback refers to the time necessary for revenue generated by a new customer to make up for the cost involved in acquiring that customer. In this report, we share SaaS CAC payback benchmarks for a variety of SaaS industries, based on our experience working with 50+ SaaS companies over the past 13 years, both B2B and B2C, as well as our previous report on SaaS CAC benchmarks.
In additional to industry, we’ve also broken down benchmarks by customer size. In the table below, we share CAC payback benchmarks for SaaS companies that target consumers, SMBs, middle market companies, and enterprises, segmented by industry.
SaaS CAC Payback Benchmarks by Industry & Customer Size
SaaS Industry | Consumer | SMB | Middle Market | Enterprise | ||||
Average | Good | Average | Good | Average | Good | Average | Good | |
Agtech | 6 months | 3 months | 12 months | 6 months | 18 months | 12 months | 24 months | 18 months |
Adtech | N/A | N/A | 13 months | 5 months | 20 months | 13 months | 22 months | 19 months |
Automotive | 5 months | 2 months | 11 months | 6 months | 18 months | 12 months | 20 months | 14 months |
Aviation & Defense | 4 months | 1 months | 10 months | 4 months | 13 months | 10 months | 17 months | 13 months |
Building Management & IoT | 6 months | 3 months | 12 months | 6 months | 18 months | 12 months | 24 months | 18 months |
Business Services | 8 months | 4 months | 14 months | 8 months | 20 months | 14 months | 30 months | 20 months |
Chemical & Pharmaceutical | 5 months | 3 months | 11 months | 6 months | 17 months | 11 months | 26 months | 17 months |
Cleantech | N/A | N/A | 10 months | 7 months | 15 months | 10 months | 21 months | 15 months |
Construction | 6 months | 4 months | 11 months | 6 months | 16 months | 11 months | 20 months | 16 months |
Design | 7 months | 5 months | 13 months | 7 months | 18 months | 10 months | 25 months | 18 months |
eCommerce | 4 months | 2 months | 9 months | 4 months | 14 months | 9 months | 18 months | 14 months |
Education | 5 months | 3 months | 11 months | 5 months | 16 months | 11 months | 21 months | 16 months |
Entertainment | 7 months | 4 months | 13 months | 7 months | 19 months | 13 months | 27 months | 19 months |
Engineering | 6 months | 3 months | 10 months | 6 months | 15 months | 10 months | 22 months | 15 months |
Fintech | 7 months | 5 months | 12 months | 7 months | 18 months | 12 months | 23 months | 18 months |
Hospitality | 9 months | 6 months | 14 months | 9 months | 20 months | 14 months | 28 months | 20 months |
Industrial | 6 months | 2 months | 11 months | 6 months | 17 months | 11 months | 24 months | 17 months |
Insurance | 8 months | 5 months | 12 months | 8 months | 17 months | 12 months | 21 months | 17 months |
Legaltech | 6 months | 2 months | 11 months | 7 months | 16 months | 11 months | 21 months | 16 months |
Oil & Gas | 5 months | 1 months | 8 months | 5 months | 11 months | 8 months | 15 months | 11 months |
Medtech | 6 months | 4 months | 9 months | 6 months | 11 months | 9 months | 14 months | 11 months |
Project Management | 9 months | 6 months | 14 months | 9 months | 18 months | 14 months | 22 months | 18 months |
Proptech | 5 months | 4 months | 8 months | 5 months | 12 months | 8 months | 19 months | 12 months |
Retail | 10 months | 7 months | 19 months | 10 months | 24 months | 19 months | 31 months | 24 months |
Security | 8 months | 5 months | 13 months | 8 months | 19 months | 13 months | 25 months | 19 months |
Staffing & HR | N/A | N/A | 15 months | 11 months | 18 months | 15 months | 21 months | 18 months |
Telecommunications | 10 months | 7 months | 13 months | 10 months | 18 months | 13 months | 22 months | 18 months |
Transportation & Logistics | 7 months | 4 months | 11 months | 7 months | 16 months | 11 months | 21 months | 16 months |
How to Calculate CAC Payback
CAC payback is calculated by dividing your company’s average customer acquisition cost by the average monthly recurring revenue per customer, as shown in the following equation:
The result of this equation is your CAC payback period in months. For example, assume a SaaS company with the following:
Average Monthly Spend | Average New Customers per Month | MRR per Customer |
$12,000 | 12 | $100 |
The first step is to calculate this company’s average customer acquisition cost, which can be done using the following formula:
Following this equation, their average customer acquisition cost would be $1,000, and therefore their CAC payback period is $1,000 ÷ $100, or 10 months.
Further Reading & Next Steps
If you’re interested in learning more about CAC, CAC payback, and other SaaS metrics, see our other reports:
- Average CAC for SaaS Businesses by Industry and Customer Type
- B2B SaaS Funnel Conversion Benchmarks
- B2B SaaS Customer Acquisition Cost: 2024 Report
- CAC by Channel – 2024 Benchmarks
- The LTV to CAC Ratio Benchmark
- B2B SaaS Marketing Budget: Breakdown & Examples
- SaaS Benchmarks: 2024 Report
If you’d like to request a pdf copy of this report, reach out here.
If you’d like to learn more about lowering your CACs by investing in low-CAC marketing channels, you can learn more about our SaaS SEO services here.