Formula
Payback = CAC / (monthly revenue × gross margin)
Why it matters
It equals CAC divided by monthly revenue per customer times gross margin. Shorter payback returns cash sooner and lets a company reinvest in growth faster.
Glossary // C / Finance
CAC payback period is the number of months of gross profit needed to recover the cost of winning a customer.
It equals CAC divided by monthly revenue per customer times gross margin. Shorter payback returns cash sooner and lets a company reinvest in growth faster.