CAC payback period
Excellent5.7 months
Best-in-class. You recover acquisition cost within a year, which means growth largely self-funds.
You earn back the $450 CAC after 5.7 months of $79.20 monthly gross profit.
- Gross profit / customer / mo
- $79.20
- CAC
- $450
- Gross profit needed for 12-month payback
- $37.50
- LTV:CAC at the same inputs
- 4.9x
$99 ARPU at 80.00% margin
Fully loaded acquisition cost
CAC ÷ 12 months
Assuming a 28-month average customer lifetime
Within the 12-month rule of thumb. Growth at this payback largely self-funds, which means you can reinvest cash from existing customers into acquiring more.
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