Calculator

CAC Payback Calculator

How long it takes for a customer to pay back their acquisition cost. Most operators size CAC against AOV. The real number is CAC against contribution margin over time.

Inputs

Customer acquisition cost

Average order value

Contribution margin

Margin per order after COGS, fees, fulfillment.Repeat purchase rate (12mo)

Share of first-time buyers who buy again within a year.Order cadence for repeats

months

Average months between orders for repeat customers.

Outputs

First-order contribution$36

CAC remaining after first order$24

CAC payback3.8 months

12-month LTV (contribution)$105

Operator read

Healthy payback. Common range for DTC brands at $1M+ monthly. Most paid-spend decisions at this payback can be made on quarterly trends rather than waiting for full LTV.

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