Acquisition Payback Calculator

Estimate when a subscription cohort’s contribution covers what it cost to acquire. The tool assumes everyone starts active in month one and a constant share of active customers remains each following month.

Forecast cumulative contribution

Use cohort figures when you have them

Enter acquisition cost per new customer, contribution per active month, monthly retention, and how far ahead you want to forecast. Contribution is net subscription revenue minus the variable costs of serving an active customer. Enter 90 if nine out of ten active customers typically remain from one month to the next.

Example: retention changes the recovery month

At $72 acquisition cost and $18 contribution per active month, a fully retained customer pays back in month four. At 90% monthly retention, expected cumulative contribution per original customer reaches about $61.90 after four months and $73.71 after five, moving payback to month five.

Compare the model with actual cohorts

Early cancellations, plan changes, and annual billing can make actual retention or cash timing uneven. Use a shorter forecast when the evidence is thin, and compare multiple scenarios before increasing spend. Payback uses contribution earned in the model. It does not predict the bank deposit date.

Related article: Estimate customer acquisition payback