CAC Payback Calculator

CAC payback is how many months of gross profit from a customer it takes to earn back what you paid to acquire them.

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CAC payback period3.8 months
Gross profit per customer per month$10.50
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What is CAC payback period?

Payback months = CAC ÷ monthly gross profit per customer. Shorter payback means cash comes back faster and growth can be funded from revenue.

How to use the CAC payback calculator (formula)

CAC payback period = Customer acquisition cost ÷ Gross profit per customer per month Gross profit per customer per month = Average order value × Orders per customer per month × Gross margin ÷ 100

What each field means

  • Customer acquisition cost — Customer acquisition cost.
  • Average order value — Average order value.
  • Orders per customer per month — Average orders per customer per month.
  • Gross margin — Gross margin percentage.

Worked example

Using these numbers: customer acquisition cost $40.00, average order value $35.00, orders per customer per month 0.6, gross margin 50%.

The cac payback period is 3.8 months.

  • Gross profit per customer per month: $10.50

What is a good CAC payback?

Under 12 months is a common target; ecommerce brands relying on first-order profit aim for payback on the first order.

Tips to improve your result

  • Shorter payback means safer scaling.
  • Raise AOV or margin to shorten payback.
  • Retention offers speed up payback.
  • Compare payback by channel.

Frequently asked questions

How do I calculate CAC payback?

CAC ÷ (AOV × orders per month × gross margin).

Why does CAC payback matter?

It shows how long cash is tied up in each new customer.

CAC payback vs LTV?

Payback is time to recover CAC; LTV is total value over the relationship.

How can I shorten payback?

Increase first-order profit, AOV and repeat purchases.

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