← 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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Related terms
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