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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.

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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.

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