CAC and payback: what you can afford to spend

CAC is what you pay to win a customer; payback is how fast you get it back. Together they tell you what you can afford to spend and whether growth is fundable.

Customer-acquisition cost (CAC) and payback period decide whether paid growth builds the business or drains it. If first-order contribution covers CAC, you profit immediately; if not, you're betting on repeat purchases, and payback period tells you how long your cash is underwater. AI computes both from your numbers and ties them to cash flow; you supply real spend and margin.

CAC is what it costs to win one customer; payback is how many orders (or days) until you earn it back. Together they decide whether paid growth is fundable or a slow bleed.

AI can compute both from your numbers and tie them to your cash position. You supply real ad spend, orders, and margin, because AI can't see them.

What you'll learn

Compute CAC honestly
Check first-order economics
Know your payback period
Set your affordable CAC and hold the line