CAC payback calculator
The short answer
This calculator counts the months of gross profit it takes to cover acquisition spend. The formula divides that spend by new MRR times gross margin. The line under the result also shows plain revenue payback, paid-only margin payback, and cohort cash payback. The fields open on labeled sample data, not a live business.
How to use it
The fields open on the sample month. Those inputs are example data for a fictional product. Replace them. Paid customers and annual customers have to fit inside the new-customer count. Gross margin percent cannot go above 100.
The headline is gross-margin payback on the whole spend. The line under it is plain revenue payback, paid-only margin payback, and cohort cash payback.
The same month is in the CAC payback template (CSV).
The formula
Gross-margin payback, in months, equals acquisition spend divided by new MRR times gross margin.
Plain revenue payback equals acquisition spend divided by new MRR. It leaves the margin out.
On the sample month, $6,000 / ($1,000 × 80%) = 7.5 months. Plain revenue payback on the same fields is 6.0 months. Those inputs are sample data.
FAQ
What is the CAC payback period formula?
Divide acquisition spend by the product of new MRR and gross margin. That is the headline on this form. Per customer, the same reading is blended CAC divided by monthly gross profit.
Should gross margin be in the formula?
The pages the guide cites do not agree. This form’s headline uses gross margin. The line under the result also shows plain revenue payback, which divides the same spend by new MRR and leaves the margin out.
Do annual plans shorten the MRR payback?
Not on the MRR formula. An annual price is divided by 12 before it is MRR. On the sample month, $1,200 becomes $100 of MRR, the same as the $100 monthly plan. Cash payback is the separate reading, because the annual cash arrives in month 1. Those prices are sample data.
Are the starting numbers real?
No. They are the SAMPLE month from the CAC payback guide, a fictional product. On those fields the headline is 7.5 months. Replace them with your own.