SaaS Metrics Calculator
Calculate key SaaS business metrics: MRR, ARR, churn rate, customer LTV, CAC, and LTV:CAC ratio.
Benchmark your startup health against industry standards.
SaaS (Software as a Service) businesses rely on a distinct set of financial metrics that differ fundamentally from traditional one-time-sale businesses. The recurring nature of subscription revenue makes these metrics essential for understanding business health.
Monthly Recurring Revenue (MRR): MRR = Σ (Active Subscribers × Monthly Plan Price)
Or broken into components: MRR = New MRR + Expansion MRR − Churned MRR − Contraction MRR
Annual Recurring Revenue (ARR): ARR = MRR × 12 (Only valid if business is stable — not for rapidly growing or declining companies)
Churn Rate (monthly): Churn Rate = Customers Lost This Month ÷ Customers at Start of Month × 100%
Revenue Churn: Revenue Churn = MRR Lost to Cancellations ÷ MRR at Start of Period × 100%
Customer Lifetime Value (LTV): LTV = ARPU ÷ Monthly Churn Rate Where ARPU = Average Revenue Per User per month
Customer Acquisition Cost (CAC): CAC = Total Sales & Marketing Spend ÷ New Customers Acquired
LTV:CAC Ratio: the gold standard SaaS health metric: LTV:CAC = LTV ÷ CAC
- Below 1:1 → losing money on every customer
- 1:1 to 3:1 → marginal or acceptable
- 3:1 → healthy benchmark
- Above 5:1 → potentially under-investing in growth
Worked example: MRR = $50,000. Monthly churn = 2%. ARPU = $50. CAC = $300. LTV = $50 / 0.02 = $2,500 LTV:CAC = $2,500 / $300 = 8.3:1 — excellent health. ARR = $50,000 × 12 = $600,000
Payback period = CAC / ARPU = $300 / $50 = 6 months — how long to recoup acquisition cost. Industry target is under 12 months.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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