In episode #294 of SaaS Metrics School, Ben Murray dives into one of the most important metrics for SaaS operators and investors: CAC Payback Period—with a focus on adapting it for usage-based pricing models.

Whether you’re B2B, B2C, or AI-focused, CAC Payback is a must-have metric when you're investing heavily in go-to-market strategies. But how do you accurately calculate it when your business has subscription + usage revenue?

Ben walks through:

• The standard CAC Payback formula and why it matters

• How to define "customer" accurately to calculate CAC

• How to adjust the denominator of the formula to include usage-based revenue

• How to estimate usage revenue when there’s no clear minimum

• Public company trends in reporting ARR in usage-based models

• Practical judgment calls that SaaS CFOs must make when incorporating usage data

If you're only including subscription ARR in your CAC Payback, but you're generating significant usage revenue—you’re underestimating your efficiency.

Learn more: https://www.thesaascfo.com/how-to-calculate-cac-payback-period-with-variable-revenue/

Coming Up Next:

CAC Payback Period Benchmarks—why you can't just trust the averages you see online.

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Gross profit is a core metric in SaaS—and 80% is the benchmark often thrown around. But is that still realistic in today’s landscape? In episode #292 of SaaS Metric School, Ben Murray walks through real benchmarking data from Ray Rike’s benchmarks at Benchmarkit.ai and explains how gross profit should evolve as your business scales. He also dives into how to set up your SaaS P&L correctly and what to include in COGS vs. OpEx.

What You’ll Learn:

• What gross profit benchmarks actually look like today

• What is our north star GP%?

• How gross profit changes as you scale

• Common COGS setup mistakes in SaaS businesses

• What to do if your gross profit is trending in the wrong direction

Benchmarks Mentioned:

• Bottom quartile

• Median

• Top performers

Key Insight:
Don’t blindly shoot for 80% at every stage. Under $2M ARR? It’s okay to be lower. But once you’re in the $10–20M+ range, that 80% benchmark becomes more important—and achievable.

Resources:
👉 Learn how to properly set up your SaaS P&L and COGS categories at: https://TheSaaSAcademy.com

ARR Webinar: https://thesaascfo.webinarninja.com/live-webinars/10693368/register

How to Calculate ARR: https://www.thesaascfo.com/how-to-define-and-calculate-arr/