This tells you how long it takes for your new customers to generate enough revenue to cover the cost of acquiring them. It’s a key profitability metric—knowing your CAC payback period helps you budget ad spend, evaluate campaign effectiveness, and understand whether you’re growing sustainably.
Where to find it
- Go to the Cohort page in Segments.
- In the metric dropdown, select “ARPU / CAC”.
- In the table, you’ll see the CAC and payback period (in months) for each customer cohort.
What’s included in CAC
- Ad costs from Google, Meta, and other channels. Make sure these channels are properly connected for accurate CAC.
- Shopify product COGS (Cost of Goods Sold).
- You can also add custom costs to fine-tune your calculations.
Tip
A shorter payback period (e.g., under 3 months) often means your acquisition strategy is working well. Longer than 6 months? It might be time to optimize your funnel or spend.
