Payback period in iGaming

Payback period shows how long it takes for a player or cohort to recover acquisition cost through NGR or contribution margin.

Formula

Payback period = time until cumulative net revenue >= acquisition cost

Example

If CAC is $80 and a cohort generates $20 NGR per FTD per month, simple payback is about four months before other costs.

Why it matters

Fast payback supports scaling acquisition. Slow payback can still be acceptable for high-LTV markets, but it creates cash-flow and risk constraints.

What to include

Use NGR or contribution margin, not just GGR. Include bonus costs, affiliate CPA, payment fees, fraud losses, and country-level taxes where possible.