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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.

Hear it from people who've done it

Get the real-world version of "Payback period" drawn from hundreds of conversations with founders and investors.

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Go deeper

Episodes on Growth & Scaling

What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel

First Cheque with Cheryl Mack & Maxine Minter · 19 July 2026

What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel
How to Think About M&A as a Startup with Alex Feldman

First Cheque with Cheryl Mack & Maxine Minter · 17 June 2026

How to Think About M&A as a Startup with Alex Feldman
Building AI at Scale: Inside Australia's Largest Bank with Blair Hudson

In The Blink Of AI with Georgie Healy · 5 June 2026

Building AI at Scale: Inside Australia's Largest Bank with Blair Hudson
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.

← Back to the full glossary

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