Customer Acquisition Cost Payback Period

Time it takes to earn back the Customer Acquisition Cost (CAC) through customer spending. Shows how long it takes for an investment in acquiring a customer to become profitable.

Formula

CAC / Monthly Gross Margin per Customer

Example

If the CAC is $300 and monthly gross margin per customer is $100, the payback period is 3 months.

Other Customer & Market Economics KPIs

• Average Revenue Per Customer
• Customer Acquisition Cost
• Customer Lifetime Value
• Customer Profitability Score