How it works
Acquisition cost is divided by monthly customer contribution, using margin-adjusted contribution rather than revenue alone. This form solves for customer acquisition cost (same currency); enter the known quantities in Payback period, Monthly customer revenue (same currency), Contribution margin.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Payback period | 10 mo | Formula symbol: months. Required unit: mo. Must be greater than zero. |
| Monthly customer revenue (same currency) | 100 | Formula symbol: revenue. Enter a numeric value. Must be greater than zero. |
| Contribution margin | 50 % | Formula symbol: margin. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–100. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Payback period
- 10 mo
- Monthly customer revenue (same currency)
- 100
- Contribution margin
- 50 %
Complete example results
- Customer acquisition cost (same currency)
- 500
Reading the result
The result solves for customer acquisition cost (same currency) from the entered quantities. Check the result unit and the formula conditions before using it.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
When can I use the customer acquisition cost (same currency) result?
Revenue and margin stay constant; churn, financing, discounting and late payment are excluded. The result is a simple time equivalent. All monetary inputs must use the same currency; currency conversion, tax and automatic fees are excluded.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: openstax.org