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The Payback Engine

Model how creative performance changes your payback period — then solve backwards from the payback target to the CPI and D7 ROAS your team can actually test against next week.

Verdict

Works, but the margin is thin.

Contribution LTV/CAC of 2.11× leaves you whole in month 9. A 29% rise in CPI drops you to 1.5× and pushes payback out materially. This is a business that needs its creative refreshed, not one that can coast.

Cumulative payback

M9

First profitable month: M5. Cumulative zero crossed in month 9.

Contribution LTV / CAC

2.11×

$5.28 kept per $2.50 spent

Deepest cash trough

-$247k

Deepest point in month 4. The cash you need before you start, not the profit you end with.

Steady-state monthly profit

$86k

Reached once all 8 cohorts are stacked, from month 8.

Unit economics

What one install is worth, and what it costs.

Revenue LTV

$6.72

3% pay × $28/mo × 8 mo

Revenue-related cost

$1.44

15% store + 5% rewards + $0.10/install

Contribution LTV

$5.28

What one install actually keeps

CAC

$2.50

Your CPI

TakeawayYour break-even CPI is $5.28. Above that, every install destroys value no matter how much volume you buy. For a 3× margin of safety your ceiling is $1.76 — you are currently $0.74 over it. Because fixed cost does not scale, the smallest budget worth running at this efficiency is $23k/mo (fixed cost ÷ (LTV/CAC − 1)).

Cumulative profit

Same budget every month. The line crosses zero the month you have paid back everything spent to date.

Today — CPI $2.50, flatNo refresh — CPI +8%/moCreative uplift — CPI −20%
-$1.00M$0$1.00M$2.00MM1M3M5M7M9M11M13M15M17M19M21M23M24

Cohort ROAS recovery

One cohort of installs, tracked from the day you bought them. Revenue ROAS is what your dashboard shows. Contribution ROAS is what your bank account sees.

Revenue ROASContribution ROAS
0%100%200%D0D60D120D180D240D300
TakeawayA cohort is not break-even at 100% ROAS. After 20% of revenue-related cost and $0.10 per install, contribution only reaches zero when Revenue ROAS hits 130%. At D30 you are at 34% revenue but only 23% contribution — a team holding the line at 100% believes it is profitable 30 points before it is. Both curves flatten at day 240, where the paying lifetime ends.

How much CPI is costing you

Everything else held constant. Only CPI moves.

CPIvs todayInstalls / moLTV / CACPaybackSteady profit / mo
$1.50−40%66,6673.52×M5$227k
$2.00−20%50,0002.64×M7$139k
$2.50today40,0002.11×M9$86k
$3.00+20%33,3331.76×M13$51k
$3.75+50%26,6671.41×Never$16k
$5.00+100%20,0001.06×Never-$19k

Payback does not move in a straight line with CPI. A 20% improvement to $2.00 pulls payback from M9 in to M7; a 50% deterioration to $3.75 stops it paying back inside 24 months entirely. The further you sit from a healthy multiple, the more each cent of CPI costs. Note the $3.75 row: LTV/CAC is still 1.41× — every install is individually profitable — yet the company never pays back, because a thin margin cannot carry $25k/mo of fixed cost. Unit economics working is not the same as the business working.

Monthly P&L

Constant monthly budget, cohorts stacking to steady state.

MonthInstallsRevenueAd spendFixedRev. costProfitCumulative
M140,000$34k$100k$25k$11k-$102k-$102k
M240,000$67k$100k$25k$17k-$75k-$177k
M340,000$101k$100k$25k$24k-$48k-$226k
M440,000$134k$100k$25k$31k-$21k-$247k
M540,000$168k$100k$25k$38k$5k-$242k
M640,000$202k$100k$25k$44k$32k-$210k
M740,000$235k$100k$25k$51k$59k-$150k
M840,000$269k$100k$25k$58k$86k-$64k
M940,000$269k$100k$25k$58k$86k$22k
M1040,000$269k$100k$25k$58k$86k$108k
M1140,000$269k$100k$25k$58k$86k$194k
M1240,000$269k$100k$25k$58k$86k$280k
M1340,000$269k$100k$25k$58k$86k$366k
M1440,000$269k$100k$25k$58k$86k$452k
M1540,000$269k$100k$25k$58k$86k$538k
M1640,000$269k$100k$25k$58k$86k$624k
M1740,000$269k$100k$25k$58k$86k$710k
M1840,000$269k$100k$25k$58k$86k$796k

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What the Payback Engine models

Most UA dashboards answer “what was my ROAS?”. This tool answers the question your CFO actually asks: when is the whole programme cash-positive — ad spend, fixed cost, store fees and all. It runs a month-by-month P&L where every cohort you buy stacks its revenue over its paying lifetime, and tracks the cumulative line until it crosses zero.

The Solve backwards mode inverts the model: pick the month you need to be whole, and it derives the maximum CPI that gets you there — then converts it into a D7 revenue ROAS kill line your creative team can test against within a week. The Cost of doing nothing mode compounds a realistic 6–10%/mo CPI drift to show what an unrefreshed creative set quietly costs over a year, on identical spend.

New to payback maths? Start with our guides on the app payback period and the D7 ROAS kill line. For the inputs, sanity-check your assumptions against our CPI benchmarks and retention benchmarks, or get a quick single-cohort view in the ROAS calculator.

Frequently asked questions

What is a payback period for mobile app UA?

The number of months until the cumulative profit of your user acquisition programme returns to zero — every dollar of ad spend, fixed cost and revenue-related cost paid back by cohort revenue. It's a stricter and more honest metric than per-cohort ROAS, because it includes fixed costs and the cash trough you have to finance along the way.

Why is my cohort not break-even at 100% ROAS?

Because dashboards show revenue ROAS, not contribution. Store fees (typically 15–30%), rewards, refunds and per-install variable costs sit between revenue and your bank account. Depending on your cost structure, true break-even usually sits at 120–140% revenue ROAS.

What is creative decay and CPI drift?

Ad creatives fatigue: as frequency builds, CTR falls and the auction charges you more for the same install. At scale on Meta and TikTok, CPI on an unrefreshed creative set typically drifts up 6–10% per month. Compounding for a year, that quietly doubles your acquisition cost — which is why the Cost of doing nothing view usually shocks people.

How do I use the D7 kill line?

Because a cohort revenue curve has a roughly fixed shape, an early ROAS reading predicts the endpoint. The tool derives the day-7 revenue ROAS a creative must clear for your payback target to stay alive — below it, kill the creative and move budget. Re-derive the multiple from your own cohort data before trusting it.

A planning model, not a financial forecast. Revenue is modelled as a flat monthly contribution per paying user across the paying lifetime, then zero — retention drives the shape of that lifetime, not a month-by-month decay curve. Fixed cost does not scale with budget. Replace every default with your own numbers before making a decision on them.