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← Glossary
Metrics & Unit Economics

Payback period

How many months of a customer's gross profit it takes to earn back what you spent acquiring them.

Why it matters

Under 12 months is healthy for SaaS; the shorter it is, the less cash you need to fund growth.

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Go deeper

Episodes on Growth & Scaling

The Buzzword That's Killing Your Pitch: Billy Chan on Alfred Travel

Pick My Brain with Alan Jones · 26 August 2026

The Buzzword That's Killing Your Pitch: Billy Chan on Alfred Travel
Why "The Number Is Never the Problem": Matt McFarlane, Founder of FNDN

Building Tech Teams with James MacDonald · 19 August 2026

Why "The Number Is Never the Problem": Matt McFarlane, Founder of FNDN
Why You Should Think Global From Day One: Ilana Elbaz on Deel

Pick My Brain with Alan Jones · 19 August 2026

Why You Should Think Global From Day One: Ilana Elbaz on Deel
All Growth & Scaling episodes →
Related terms

CAC

The fully-loaded cost of acquiring one customer — sales and marketing spend divided by new customers won.

LTV:CAC ratio

Lifetime value divided by acquisition cost — a quick read on whether your growth engine is profitable.

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