How to calculate CAC payback period
CAC payback in months is customer acquisition cost divided by monthly revenue per customer times gross margin.
Skip the maths and use the cac payback calculator
The formula
Payback months = CAC ÷ (monthly revenue per customer × gross margin).
Step by step
- Work out CAC for the cohort.
- Find monthly revenue per new customer.
- Multiply by gross margin.
- Divide CAC by the result.
Worked example
CAC 1,200; 100 a month; 80% margin
- Monthly gross profit = 100 × 0.80 = 80
- 1,200 ÷ 80 = 15
CAC is paid back in 15 months.
Common questions
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APA
Free Calculator. (n.d.). How to calculate CAC payback period. https://freecalculator.tech/guides/how-to-calculate-cac-payback
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"How to calculate CAC payback period." Free Calculator, https://freecalculator.tech/guides/how-to-calculate-cac-payback.
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How to calculate CAC payback period — Free Calculator, https://freecalculator.tech/guides/how-to-calculate-cac-payback