Calculate CAC Payback
Calculate CAC payback using acquisition cost, revenue, and gross margin.
Nadia needs to check whether a $6,000 CAC is safe when the average customer pays $1,000 per month and gross margin is 62 percent. CAC payback = CAC divided by monthly gross profit per customer. The common shortcut is dividing CAC by monthly revenue, which ignores direct delivery cost and makes payback look faster than cash reality. Monthly revenue Average customer revenue = $1,000 per month. Revenue is the starting point, not the payback amount. Gross profit $1,000 x 62 percent gross margin = $620 monthly gross profit. Use gross profit because delivery cost consumes the rest. Payback $6,000 CAC…
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