Table 1From “What is CAC payback period?”
What cash recovery calendar worksheet exposes true break-even timing?
Table 1What cash recovery calendar worksheet exposes true break-even timing?
| Month | Starting accounts | Active accounts | Cohort gross margin | Unrecovered CAC balance | Cumulative cash position |
|---|---|---|---|---|---|
| Month 0 | 100 | 0 | 0 | -500,000 | -500,000 |
| Month 1 | 100 | 96 | +38,400 | -461,600 | -461,600 |
| Month 3 | 94 | 91 | +36,400 | -386,000 | -386,000 |
| Month 6 | 89 | 87 | +34,800 | -278,200 | -278,200 |
| Month 9 | 85 | 83 | +33,200 | -175,800 | -175,800 |
| Month 12 | 82 | 80 | +32,000 | -77,400 | -77,400 |
| Month 15 | 78 | 77 | +30,800 | +14,600 | +14,600 |
Swipe or scroll horizontally if the table is wider than your screen.
Source: Table from this essay. Sources and interpretation are given in the article.

From the essay
Growth that compounds
What is CAC payback period?
CAC payback measures when cumulative gross margin recovers acquisition costs. State the margin boundary, churn and cash calendar.
Read the essayThis exhibit belongs to an essay: the numbers live here, the argument lives there.
Cite or embed
Related exhibits
Contact
Bring the question you're working on.
Research, a guest lecture, or a commercial question.


