SaaS Metrics Calculator

This SaaS metrics calculator shows whether a subscription business is growing healthily: from customers, revenue per customer, cancellations and marketing spend in one month it calculates MRR, ARR, churn, net revenue retention, CAC, LTV and the payback period.

Source: David Skok – SaaS Metrics 2.0 (MRR, Churn, NRR, CAC, LTV, LTV:CAC ≥ 3, Amortisation < 12 Monate). Updated: .

cancelled subscriptions
average monthly subscription revenue
everything spent to win the new customers
%
revenue minus direct costs (hosting, support), in percent
upgrades and add-ons, monthly; 0 if unknown
monthly; 0 if unknown
My ToolboxYour inputs are saved in this browser only.

Result

Recurring revenue
MRR at month end 43,200.00 – annualized ARR 518,400.00
MRR start → end
40,000.00 → 43,200.00
Net new MRR
3,200.00
Churn
Customer churn 3%, gross revenue churn 3.8%
Net revenue retention
100%
CAC (cost per new customer)
300.00
LTV (customer lifetime value)
2,133.33
LTV : CAC
7.1 : 1
CAC payback
4.7 months
Quick ratio
3.1
Working
  • Starting MRR = customers × ARPA = 500 × 80.00 = 40,000.00
  • Net new MRR = new 3,200.00 + expansion 1,500.00 − cancellations 1,200.00 − downgrades 300.00 = 3,200.00
  • Customer churn = lost ÷ customers at start = 15 ÷ 500 = 3%
  • CAC = sales and marketing ÷ new customers = 12,000.00 ÷ 40 = 300.00
  • LTV = ARPA × gross margin ÷ churn = 80.00 × 80% ÷ 3% = 2,133.33
Healthy by the common rule of thumb: LTV:CAC of 3 or more and payback within 12 months.

How it is calculated

The key SaaS metrics can be worked out from eight monthly figures. A single month fluctuates; for decisions, an average over several months is more reliable.

What the metrics mean

Benchmarks

A widely used rule of thumb from David Skok: LTV:CAC of at least 3 and payback under 12 months. These are guidelines, not laws – they depend on pricing model, market and funding. Related basics are customer lifetime value, ROAS and the conversion rate.

Frequently asked questions

What is MRR for a SaaS company?

Monthly recurring revenue from subscriptions: number of customers times average monthly revenue per customer. Annual plans are divided down to a month. Multiplied by 12 it gives ARR.

How do I calculate churn?

Customers lost in the month divided by customers at the start of the month. 15 cancellations out of 500 customers is 3%. If you count revenue instead of customers, use lost revenue including downgrades.

How do I calculate CAC?

All sales and marketing costs in a period divided by the new customers won in that period. Include sales salaries, otherwise CAC comes out too low.

What is a good LTV:CAC ratio?

A common rule of thumb is 3 : 1 or higher. Far below that, growth barely pays off; far above, you may be underinvesting in growth. Payback should also be under 12 months.

What does net revenue retention above 100% mean?

Revenue from existing customers grows through upgrades faster than it shrinks through cancellations and downgrades, so the business grows even without new customers.

Sources and legal basis

As of: · Editorial policy

Related tools