CAC and payback period
What a new customer costs you, and how many months it takes to earn that back.
How it works
CAC = (marketing + sales) / new customers. Payback = CAC / (monthly revenue × gross margin). Under 12 months is considered healthy.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Marketing spend this month6000
- Sales costs this month (salaries, tools)4000
- New customers this month40
- Monthly revenue per customer49
- Gross margin (%)80
you get:
- Customer acquisition cost (CAC)€250.00
- Payback period6.4 months
- Gross margin per customer per month€39.20
- VerdictHealthy
Frequently asked questions
How does the “CAC and payback period” tool work?
CAC = (marketing + sales) / new customers. Payback = CAC / (monthly revenue × gross margin). Under 12 months is considered healthy.
What do I need to enter?
Just fill in: marketing spend this month, sales costs this month, new customers this month, monthly revenue per customer, gross margin. The result updates as you type.
Can you give an example?
Marketing spend this month: 6000; Sales costs this month (salaries, tools): 4000; New customers this month: 40; Monthly revenue per customer: 49; Gross margin (%): 80 → Customer acquisition cost (CAC): €250.00; Payback period: 6.4 months.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.