How to Calculate CAC Payback?

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There are two ways to calculate the CAC payback period:

Individual customer. A customer's CAC is divided by their total annual revenue advertising database (their monthly subscription rate multiplied by 12). Example: A customer costs $350 and contributes $300 annually.
CAC Payback = 350 (CAC) / 300 (annual contribution) = 1.16 years = 13.9 months

Customer group. Divide the sales and marketing expenses for the previous quarter (or year) by the difference in subscription revenue between quarter 1 and quarter 2. You can then divide that number by 4 to get the number of years it will take to recover the original cash outflow.

CAC Payback = 6,000 / 1,250 = 4.8 quarters / 4 = 1.2 years
How to break down the variables used to calculate the payback period?
Sales and marketing expenses for quarter 1 also include all costs to acquire new customers in quarter 2.
The difference in subscription revenue between the two quarters is the amount of new revenue that acquired customers added in the second quarter.
Example:

Total sales and marketing expenses (including marketing campaigns and salaries for both teams) for quarter 1 plus expenses for quarter 2 is $6,000.

Revenue for quarter 1 is $2,750, and revenue for quarter 2 is $4,000. The difference between the two revenues is $1,250.