Your Customer Acquisition Costs (CAC) payback time tells you how long it takes for you to break even from your CAC. To increase revenue growth, aim for a CAC payback time of less than 12 months.
Note that Average Revenue Per Account (ARPA) calculation distributes customer payments into monthly recurring revenue. For example, when a customer paid for a subscription of six months in advance, that revenue is divided by six and displayed for a period of six months.
CAC payback time = Customer Acquisition Cost (per customer) / (ARPA of all accounts x Gross Profit %)
Updated 7 months ago