Shorter payback recycles cash into growth faster. Many early-stage VCs prefer < 12 months for SMB SaaS.
SMB < 12–15 months; Mid-market 12–18; Enterprise 18–24; usage-based varies by cohort.
CAC $600; ARPU $60; GM 80% → Payback = 600 / (60×0.8) = 12.5 months.
Using revenue instead of gross profit; mixing paid vs blended CAC; not cohorting.
Financials slide: show payback in months next to CAC and LTV/CAC.
If pricing is usage-based, use average gross profit per month from the target cohort.