CAC Payback
You can be profitable on paper and still run out of money, because the profit arrives months after the spend.
Defaulted to 3 because you have not set it. Change it if you know yours; only the months number depends on it.
Fill in the three figures on the left to see how long a customer takes to pay back what you spent winning them.
What this does not account for
- Churn — this assumes the customer keeps buying at the rate you entered
- Whether your margin holds on repeat orders; discounting to win a second order changes it
- The cost of the emails, ads and offers used to bring them back
- Cash flow timing: paying back in four orders is very different at four orders a month and four a year
If you have not worked out what a single sale needs to return, start with break-even ROAS.
Payback is a symptom
What Is Making It That Long?
A long payback is usually acquisition cost, margin or retention — and which one it is decides what to do about it. The Growth Audit takes four minutes.