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Time to Breakeven

How the Time to Breakeven is defined and calculated

Written by Frank Birzle

The number of days it take you to break even on your CACs.


Formula

Time to Breakeven = MIN(DATE(SUM(Contribution Margin 2)β‰₯ Customer Acquisition Costs)- First Order Date)

Explanation

The Time to Breakeven shows you how many days it took you before you were able to recover all costs you incurred to acquire a new customer. Starting from then, the CM2 you make from each additional order is profit.

Notes

Should this point be not reached for a selected customer cohort, (when CAC to LTV 1), the result will be n/a.

Used in the following reports

n/a

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