Time to Breakeven

How the Time to Breakeven is defined and calculated

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over a week ago

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


Formula

Time to Breakeven = MIN(DATE(SUM(Contribution Margin 2)≥ 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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