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Payback Period

Calculators

How many months to recoup what you paid to acquire a customer? (Payback)

What does it mean?

Payback period = customer acquisition cost ÷ their monthly profit. It tells you how many months a customer stays a “loss” before they start earning for you — a critical cash-flow metric: the longer it is, the longer your money is tied up and the higher your risk. The rule: it must be shorter than the customer's lifetime, or you lose on every one.

Customer acquisition cost (SAR)Customer's monthly revenue (SAR)Profit margin (%)

Payback period

4 months

Monthly profit per customer

80 SAR

The decisive rule: payback must be shorter than your customer's lifetime — if they stay less than that, you lose on every customer. Compare it with lifetime in the Retention Calculator.

Ranges are indicative and vary by industry and your capital: under 3 months fast · 3–12 usually healthy · above 12 needs review.

You need 4 months to recoup the acquisition cost — acceptable, but watch your cash flow: your money is tied up that whole time before the customer turns profitable.

Pin the calculation, then change the numbers and compare the two side by side.

The link carries your numbers — anyone opening it sees the same calculation