CAC and CAC payback calculator
What you spend to win each new customer, and how many months of margin it takes to earn that back. It opens on a worked example — change any number. Nothing you enter is saved.
Customer acquisition cost (CAC)
$200
- Monthly gross margin per customer
- $40
- CAC payback period
- 5 months
The formula
- CAC = total sales and marketing cost ÷ new customers acquired
- CAC payback (months) = CAC ÷ (monthly recurring revenue per customer × gross margin)
How to read it
A falling CAC or a shorter payback means each customer is becoming cheaper to win. Use the same period and the same cost definition every time you compare.
Definitions, a full worked example and common pitfalls are in our guide: Customer Acquisition Cost (CAC) and the CAC Payback Period.
General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.