CAC Payback Period: How to Calculate It, What's a Good Number
How to calculate CAC payback period from gross margin, why it differs from LTV:CAC, and what counts as healthy at different SaaS stages.
The numbers behind a SaaS business — MRR and churn, CAC payback, break-even pricing, and how an early-stage company gets valued.
How to calculate CAC payback period from gross margin, why it differs from LTV:CAC, and what counts as healthy at different SaaS stages.
Revenue multiples vs discounted cash flow for early-stage SaaS valuation. What each method assumes, when each breaks down, and how they relate.
Calculate break-even units, margin of safety, and the extra volume a discount actually requires to stay profit-neutral, with worked examples.
MRR, churn, NRR, quick ratio and Rule of 40 explained in plain English, with a worked example showing why revenue growth alone can hide trouble.