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ROAS & CAC Payback

Once you've connected Stripe and imported your ad spend, Signal Sparrow can answer the three money questions every marketer cares about — using real revenue, not platform estimates.

The three numbers​

ROAS (Return on Ad Spend)​

How much revenue each dollar of ad spend brought in.

ROAS = Revenue ÷ Spend

Because the revenue side comes from Stripe, this is your true ROAS — not the inflated version ad platforms report for themselves.

CAC (Customer Acquisition Cost)​

How much it costs, on average, to win one paying customer.

CAC = Spend ÷ New paying customers

CAC Payback​

How many months of a customer's revenue it takes to earn back what you spent acquiring them.

CAC Payback = CAC ÷ Monthly revenue per customer

A shorter payback means you get your money back faster and can reinvest sooner.

Why it needs ad spend​

All three compare money in to money out. Signal Sparrow already knows the "money in" from Stripe — you just need to give it the "money out" by importing your ad spend. Until then, revenue shows but ROAS and CAC can't be calculated.

Read it per channel​

Every number is available per channel, so you can see that (for example) LinkedIn has a higher CAC but a faster payback than Meta — and decide where the next dollar should go.

Payback beats a one-time ROAS snapshot

For subscription businesses, CAC payback is often the truest health check. A channel with mediocre first-month ROAS can still be excellent if those customers stay and pay for many months.

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