Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked. If you think about your CAC as money spent like an investment in your future customers, like all top investors, you’ll want to earn your initial investment money back. Here’s where your CAC Payback Period benchmark comes in really handy.
The CAC Payback Period is the number of months it takes for your company to earn back what was spent on acquiring your customers. Think of it as your break-even point and a great indicator of how much cash the company needs in order to continue growing profitably.
This template will allow you to calculate both of these essential metrics in a couple of clicks!
CAC Payback Period
Executive dashboard to visualize the customer acquisition cost and CAC payback time by monthsBenchmark your company CAC and CAC payback time against the industry standards
Create business statistics and forecast your future growthStore up to 60 months of the data to run forecast vs. actuals analysis in the future
CAC payback Charts
CAC and CAC payback Charts Inputs
CAC payback calculation inputs