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CAC payback period calculator for subscription patients
Enter acquisition cost, monthly price, gross margin and churn to see how many months a patient takes to pay back what it cost to win them, or whether they never do.
CAC payback
Enter your numbers to see the result.
Free tool by Telehealth Media · telehealthmedia.com
How it works
CAC payback is how long a patient's gross profit takes to cover what you paid to acquire them.
- Simple payback = CAC / (monthly price x gross margin)
- With churn: add up each month's gross profit, reduced by the share of patients still active, until it reaches CAC
With churn, some patients leave before paying back. If the running total never reaches CAC within 50 years, the calculator says the patient never pays back, a case most payback calculators hide.
Worked example
CAC is 151.22 USD, the plan is 89 USD a month at a 70% margin, and 12% of patients cancel each month.
| Step | Result |
|---|---|
| Simple payback | 2.4 months |
| Payback with churn | 3 months |
With a 400 USD CAC, a 50 USD plan at 60% margin and 15% monthly churn, the patient never pays back. These numbers illustrate the formula; enter your own.
Telehealth notes
- Month-one churn is usually the biggest. Use the retention cohort calculator if your first month is very different from later ones.
- A short payback lets you reinvest faster. It matters most when cash is tight.
Questions
What is CAC payback?
The number of months it takes for gross profit from a customer to equal the cost of acquiring them.
Why can payback be never?
If patients cancel faster than they earn back their acquisition cost, the average patient leaves before paying back.
Are my numbers stored?
No. The calculation runs in your browser and nothing is sent to us.