Affiliates and acquisition

Player payback period: when the money spent comes back

Payback period (player payback) is the time it takes for the cumulative contribution margin of a player or cohort to cover the acquisition cost. For example, a cohort cost €75,000 in CPA, and its contribution margin passed that amount in the third month.

Yevhen SychovOctober 2026

Formula and example

Payback period = the point at which cumulative contribution margin catches up with the acquisition costFor example, CPA is €150. The player's contribution margin is €30 after the 1st deposit, €100 after the 3rd and €160 after the 5th: the player paid back on the fifth deposit.

LTV answers how much a player will bring in overall. The payback period answers when the money spent on them comes back.

Calculating by cohort

The player in the example made it to a fifth deposit, but many leave after the first, and CPA was paid for them too. That is why the period is calculated for a cohort of first-time depositors (FTD): all of its contribution margin against everything spent on it.

500 FTDs at a CPA of €150Contribution marginNet against €75,000 of CPA
Day 30€30,000minus €45,000
Day 60€55,000minus €20,000
Day 90€76,000plus €1,000

The cohort paid back in the third month. Calculate it this way for each source and each month of first deposit.

What goes into the cost

Acquisition cost is CPA or ad spend, RevShare to the affiliate and bonuses on first deposits. Bonuses are already deducted in NGR, and RevShare in the contribution margin, so only CPA or ad spend is set against it. Each item goes into the calculation once.

How to use it

  • Sources: with a 60-day payback, money comes back into traffic three times faster than with 180 days.
  • CPA ceiling: no higher than the cohort's contribution margin per player by the target date, for example by day 90.
  • Second deposit: the more players in a cohort reach a second deposit, the faster it pays back.

Common mistakes

  • Calculating on deposits or GGR. On paper, the player pays back before the money actually stays with the casino.
  • Counting only those who reached the fifth deposit. Players who left after the first also cost CPA, and the period comes out shorter than the real one.
  • Forgetting RevShare. On a hybrid deal, the affiliate gets CPA plus a percentage every month. Without RevShare, payback looks faster than it is.
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