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The CAC payback calculation
The arithmetic is simple. The cost boundary decides whether the answer is useful.
| Input | Illustrative value | Boundary to state |
|---|---|---|
| Fully loaded acquisition cost | 12,000 | Sales, marketing, commission and partner cost |
| Monthly recurring revenue | 2,000 | Starting contract only or expected expansion included |
| Contribution margin | 75% | Revenue less the costs that scale with the customer |
| Monthly contribution | 1,500 | 2,000 multiplied by 75% |
| Simple payback | 8 months | 12,000 divided by 1,500 |
| First-year risk | Unknown | Churn, contraction, onboarding and collection timing |
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Reference & Evidence
Source: Author's framework. The example values are illustrative and are not benchmarks.
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