Formula
Payback = CAC / (monthly revenue × gross margin)
Why it matters
A fully loaded figure includes ad spend, salaries, commissions, agency fees and software. Compare CAC with gross profit per customer to learn how quickly acquisition pays back.
Glossary // C / Finance
Customer acquisition cost is the total sales and marketing spend needed to win one new customer.
A fully loaded figure includes ad spend, salaries, commissions, agency fees and software. Compare CAC with gross profit per customer to learn how quickly acquisition pays back.