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Table Table 1 Revenue operations & AI

The CAC payback calculation

The arithmetic is simple. The cost boundary decides whether the answer is useful.

InputIllustrative valueBoundary to state
Fully loaded acquisition cost12,000Sales, marketing, commission and partner cost
Monthly recurring revenue2,000Starting contract only or expected expansion included
Contribution margin75%Revenue less the costs that scale with the customer
Monthly contribution1,5002,000 multiplied by 75%
Simple payback8 months12,000 divided by 1,500
First-year riskUnknownChurn, contraction, onboarding and collection timing

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Reference & Evidence

Source: Author's framework. The example values are illustrative and are not benchmarks.