Definition

Payback period.

Also called: CAC payback, Breakeven day

How long it takes a cohort’s cumulative revenue to cover the cost of acquiring it.

Formula Payback day = first day where cumulative cohort revenue ≥ acquisition cost

Payback is the day cumulative ROAS reaches 100% (net of platform fees, if you are being strict). Shorter payback means acquisition cash is recycled faster, which allows faster growth on the same capital.

The acceptable window depends on your cash position and certainty. A long payback on a stable, well-understood curve can be fine; the same window on a young game with few matured cohorts is a much bigger bet.

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