D2C CAC payback calculator
Scaling Socials built this to answer one cash-flow question: how long does it take to earn back what you spent to acquire a customer? Enter your CAC, average order value, gross margin and repeat rate to see your payback period in months.
How CAC payback is calculated
CAC payback period is the time a customer’s gross contribution takes to earn back the cost of acquiring them. The shorter it is, the sooner that cash is free to acquire the next customer.
Contribution per order = AOV × gross margin.
CAC payback (months) = CAC ÷ (AOV × gross margin × orders per year ÷ 12).
Worked example: with a ₹800 CAC, ₹1,500 average order value, 40% gross margin and 2.5 orders a year, contribution per order is ₹1,500 × 0.40 = ₹600, annual contribution is ₹600 × 2.5 = ₹1,500, and monthly contribution is ₹125. Payback is ₹800 ÷ ₹125 ≈ 6.4 months. These figures are an illustrative example, not a client result.
Run your numbers
Change any input and the result updates. The URL updates too, so you can share or bookmark a result. With JavaScript disabled, the example below is shown for reference.
How long the customer’s repeat contribution takes to earn back what you paid to acquire them.
First-order gross contribution is ₹600 against a CAC of ₹800 — a shortfall of ₹200 on order one.