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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.

Customer acquisition cost (Yearly)

Estimated churn percentage for that customer

Do not have CAC Details?

CAC Calculator

Margin-Adjusted Revenue (Monthly)

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

Time to Payback CAC Result

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Why is it important to know Time to Payback CAC?

  1. Reflects the number of months it takes for a customer to start becoming profitable for your company
  2. 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.
  3. Helps you maintain a check to ensure that the payback time stays below 12 months.

Customer acquisition cost (Yearly)

Estimated churn percentage for that customer

Do not have CAC Details?

CAC Calculator

Margin-Adjusted Revenue (Monthly)

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

Time to Payback CAC Result

-

Let's get in touch to know more

Contact Us

7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones!

That’s why extending your CLV is essential to a healthy business model & overall business strategy…

Don’t believe us?

Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

Other Calculator

Customer Lifetime Value Calculator (CLTV)

Customer Acquisition Cost Calculator (CAC)

Marketing % Of Customer Acquisition Cost

Ratio of Customer Lifetime Value to CAC

Marketing Originated Customer %

Marketing Influenced Customer %

Why these 7 metrics are significant for your business and should be measured at regular intervals?

Generate real ROI on customer acquisition

Enhance your retention marketing strategy

Create more effective messaging, targeting & nurturing

FAQ

Answers to Frequently Asked Questions about Time to Payback CAC

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

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.

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