Time to Payback CAC

The Time to Payback CAC shows you the number of months it takes for your company to earn back the CAC it spent acquiring new customers.

Why is it important to know Time to Payback CAC?
  • Reflects the number of months it takes for a customer to start becoming profitable for your company
  • The resultant time period is the average timeline by the end of which your company expects to recover the CAC it spends on a new customer.
  • Helps you maintain a check to ensure that the payback time stays below 12 months.
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FAQ

Answers to Frequently Asked Questions about Time to Payback CAC

What is Margin Adjusted Revenue?

Margin Adjusted Revenue is How much your customers pay on average per month

What Time to Payback CAC Means and Why It Matters?

In industries where your customers pay a monthly or annual fee, you normally want your Payback Time to be under 12 months. The less time it takes to payback your CAC, the sooner you can start making money off of your new customers. Generally, most businesses aim to make each new customer profitable in less than a year.