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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

How Do You Grow a Marketplace When Both Sides Are Slow? Ishan Dan on RegenX

Pick My Brain with Alan Jones · 12 August 2026

How Do You Grow a Marketplace When Both Sides Are Slow? Ishan Dan on RegenX
Deel's COO on the AI Agent Writing Its Own Code

In The Blink Of AI with Georgie Healy · 7 August 2026

Deel's COO on the AI Agent Writing Its Own Code
What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel

First Cheque with Cheryl Mack & Maxine Minter · 20 July 2026

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

← Back to the full glossary

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