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Analytics & Event Tracking
CAC Payback Calculator
Calculate customer acquisition cost payback period, analyze cash flow projections, and run sensitivity analysis on recovery scenarios.
CAC Payback Inputs
Total cost to acquire one customer
Monthly profit per customer
Revenue minus COGS percentage
12.0
Payback Period
Excellent
CAC
$1,200
Monthly Margin
$100
Annual Margin
$1,200
12-Month ROI
0%
Break-Even Analysis
Total Revenue Needed
$1,600
To recover $1200 CAC
Gross Profit at Break-Even
$1,200
At 75% margin
Months to Break-Even
16.0
Revenue-based calculation
Cash Flow Projection
| Month | Monthly Cash Flow | Cumulative Cash Flow | Status |
|---|---|---|---|
| Start | $-1,200 | $-1,200 | |
| Month 1 | $100 | $-1,100 | |
| Month 2 | $100 | $-1,000 | |
| Month 3 | $100 | $-900 | |
| Month 4 | $100 | $-800 | |
| Month 5 | $100 | $-700 | |
| Month 6 | $100 | $-600 | |
| Month 7 | $100 | $-500 | |
| Month 8 | $100 | $-400 | |
| Month 9 | $100 | $-300 | |
| Month 10 | $100 | $-200 | |
| Month 11 | $100 | $-100 | |
| Month 12 | $100 | $0 | Break-Even! |
Sensitivity Analysis
CAC Impact
-50%$600
6.0 mo-20%$960
9.6 mo+20%$1,440
14.4 mo+50%$1,800
18.0 moMonthly Margin Impact
-100%$0
∞-50%$50
24.0 mo-20%$80
15.0 mo+20%$120
10.0 mo+50%$150
8.0 moScenario Comparison
| Scenario | CAC | Monthly Margin | Payback | Net @ 12 Mo |
|---|---|---|---|---|
| Current | $1,200 | $100 | 12.0 mo | $0 |
| Optimized | $900 | $120 | 7.5 mo | $540 |
Insights & Recommendations
✓ Good payback period of 12.0 months.
This is within the ideal 6-12 month benchmark for most businesses.
Industry benchmarks:
• SaaS: 6-12 months (world-class), 12-18 months (acceptable)
• E-commerce: 3-6 months (excellent), 6-12 months (good)
• Subscription boxes: 6-9 months (target range)
✓ Your payback period supports aggressive growth and outside funding.
Consider: Increasing acquisition spend while maintaining this efficiency.
Understanding CAC Payback
Payback Period Benchmarks
- • < 6 months: Excellent - enables aggressive growth
- • 6-12 months: Good - ideal for most businesses
- • 12-18 months: Acceptable - but strains cash flow
- • 18-24 months: Poor - limits growth velocity
- • > 24 months: Unsustainable for most businesses
Ways to Improve
- • Reduce CAC: Optimize channels, improve conversion
- • Increase margins: Raise prices, reduce COGS
- • Accelerate revenue: Annual plans, upfront payments
- • Improve retention: Reduce churn, increase LTV
- • Target better customers: Focus on high-value segments
Learn More in The Course
This tool is derived from Module 1 of "The Ultimate Growth Engineering Course." Learn the complete experimentation framework, how to design better tests, and interpret results like a pro.
Explore the Course