Work CAC payback from first principles
Calculate CAC payback and interpret whether the recovery cycle fits the company’s financing reality.
A paid channel produces customers at a fully loaded CAC of $900. Each customer generates $120 in monthly revenue, but only $75 in monthly gross contribution after variable delivery and support cost. CAC payback = acquisition cost divided by monthly gross contribution. The novice move is to divide CAC by monthly revenue, which makes recovery look faster than the business actually experiences it in cash terms. Step 1 Choose the right numerator: Use the fully loaded CAC of $900, not just ad spend. If commissions, agency fees, or sales software helped acquire the customer, they belong in the recovery question.…
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