SaaS Metrics Calculator
Calculate key SaaS health metrics including MRR, churn rate, customer lifetime value (LTV), CAC, and the LTV:CAC ratio.
Key SaaS metrics every subscription business should track:
MRR (Monthly Recurring Revenue): Your predictable monthly revenue.
Churn Rate: Percentage of customers who cancel per month.
Monthly Churn Rate = (Customers Lost / Starting Customers) × 100
LTV (Customer Lifetime Value): Total revenue from an average customer.
LTV = ARPU / Monthly Churn Rate
CAC (Customer Acquisition Cost): Cost to acquire one customer.
CAC = Total Sales & Marketing Spend / New Customers
LTV:CAC Ratio: The key health metric.
- < 1:1 — Losing money on every customer (critical)
- 1:1 to 3:1 — Unsustainable, improve retention or reduce CAC
- 3:1 — Healthy benchmark target
- 5:1+ — Great, but may be under-investing in growth
ARR = MRR × 12
Months to recover CAC: CAC / ARPU