Free CAC Payback Period Calculator

Quick answer

CAC payback measures how many months of gross profit it takes to recover the cost of acquiring a customer.

Formula

CAC payback months = CAC ÷ (monthly ARPU × gross margin)

Example

$600 CAC, 00 ARPU, and 80% gross margin gives a 7.5-month payback period.

How to interpret it

Shorter payback generally improves capital efficiency, but the right threshold depends on contract terms, churn, and growth strategy.

Methodology, assumptions and limitations