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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

  1. Work out CAC for the cohort.
  2. Find monthly revenue per new customer.
  3. Multiply by gross margin.
  4. 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.

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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

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