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Payback Period (Customer Acquisition) Calculator

Calculate CAC payback period from CAC and monthly gross profit per customer.

Payback Period (Customer Acquisition) Calculator

Compute CAC payback in months from CAC and monthly gross profit.

Enter CAC and gross profit

Formula

Payback (months) = CAC ÷ monthly gross profit per customer.

Use gross profit (not revenue) for accurate unit economics.

Steps

  • Enter CAC (customer acquisition cost).
  • Enter monthly gross profit per customer.
  • Review payback period in months.
  • Pair with LTV:CAC and churn for full efficiency view.

Additional calculations

Enter CAC and gross profit to see payback insights.

Related calculators

SaaS CAC (Customer Acquisition Cost) Calculator

Source CAC input.

LTV Calculator

Pair payback with LTV for return.

CAC Payback: How Fast Do You Recover Spend?

Use this guide to compute payback, set targets, and connect payback to LTV:CAC and churn while keeping LCP low.

Table of Contents

Formula & Inputs

Payback (months) = CAC ÷ monthly gross profit per customer. Use margin-adjusted profit, not revenue.

Benchmarks

Sub-12 months: efficient. 12–18: typical growth. >18: risky unless churn is very low and LTV:CAC is strong.

Improving Payback

  • Increase ARPA through packaging and pricing.
  • Improve gross margin by optimizing COGS.
  • Reduce CAC via channel efficiency and onboarding speed.

Risks & Churn

Slow payback plus high churn can mean CAC is never recovered. Pair payback analysis with churn and LTV.

Tracking Cadence

Track monthly; share rolling averages. Keep interface lightweight to support low LCP.

FAQs

What is payback period?

Months needed to recover CAC from monthly gross profit per customer.

What is a good payback?

Sub-12 months is often efficient for SaaS; 12–18 is common in growth; beyond 18 can be risky unless churn is very low.

Should I use gross or net profit?

Use gross profit per customer (revenue × gross margin) to reflect unit economics.

How does churn affect payback?

Higher churn shortens lifetime, so slow payback plus higher churn can make CAC unrecoverable.

Why pair with LTV:CAC?

Payback shows time to recover CAC; LTV:CAC shows overall return. Use both for efficiency.

Summary

Calculate CAC payback with blank defaults in the Vitamin K layout: inputs, results, formula, steps, guide, related tools, FAQs, and summary.

Outputs include payback months, status, recommendations, and action plan to improve recovery speed.

Use alongside LTV:CAC, CAC, and churn to keep acquisition efficient and LCP low.

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Payback Period (Customer Acquisition) Calculator

Calculate CAC payback period from CAC and monthly gross profit per customer.

How to use Payback Period (Customer Acquisition) Calculator

Step-by-step guide to using the Payback Period (Customer Acquisition) Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Payback Period (Customer Acquisition) Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Payback Period (Customer Acquisition) Calculator is designed to be user-friendly and provide instant calculations.

Is the Payback Period (Customer Acquisition) Calculator free to use?

Yes, the Payback Period (Customer Acquisition) Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Payback Period (Customer Acquisition) Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Payback Period (Customer Acquisition) Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.