CALCULATING CAC PAYBACK PERIOD, THE RIGHT WAY

Summary from the TLDR Founders newsletter

This article provides a comprehensive guide on how to calculate Customer Acquisition Cost (CAC) payback period, which is the number of months it takes for a company to break even on the cost of acquiring a new customer. It covers the key components needed for the calculation, provides a template and benchmarks for what a "good" payback period looks like based on company size and industry, and discusses potential red flags to watch out for when analyzing this metric.