Calculate CAC Payback
Calculate CAC payback for a customer segment using gross margin contribution.
Partner channel CAC is $840 per customer. Each customer pays $210 monthly. Gross margin is 70%. The team wants to know how many months it takes to recover CAC. CAC payback = CAC / monthly gross profit contribution. The common trap is dividing CAC by revenue. That ignores the direct cost of serving the customer and makes the growth loop look safer than it is. CAC $840 acquisition cost per customer This is the upfront spend the business must recover. Revenue $210 monthly revenue per customer Revenue is the starting point, not the recovery amount. Contribution $210 x 70% gross…
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