All terms
Finance
Payback period
How many months of gross profit it takes to earn back the cost of winning that customer.
Formula
Payback (months)=CACMonthly gross profit per customer
Calculate it now
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Why it matters
A long payback ties up cash you may not have.
Example
CAC is 2,000 TRY and monthly gross profit is 800 TRY. Payback is 2.5 months.
