CAC payback

CAC payback (also called the CAC payback period) is the time it takes before the earnings from a customer have covered the cost of acquiring that customer (CAC). A shorter payback means the business can reinvest the money in acquiring more customers sooner, which makes growth more capital efficient.

If it costs $100 to acquire a customer and the customer contributes $50 in profit a month, the CAC payback is two months.

Illustration symbolizing the concept "CAC payback": CAC payback (also called the CAC payback period) is the time it takes before the earnings…

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