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SaaS Payback Period: Time-to-Profit
Even with a high LTV, a long payback period can bankrupt a bootstrapped startup.
01.The Formula
Payback Period = CAC / (ARPU x Gross Margin %).
Frequently Asked Questions
What is a healthy payback period?
For bootstrapped startups, aim for <12 months. Ideally <6 months to reinvest faster.
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