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: .
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
- MRR / ARR: monthly and annual recurring revenue (ARR = 12 × MRR). The change is net new MRR.
- Churn: the share of customers who leave in a month. Revenue churn also counts downgrades.
- Net revenue retention (NRR): revenue from existing customers after a month compared with the start, including upgrades. Above 100% the base grows on its own.
- CAC: sales and marketing cost ÷ new customers.
- LTV: ARPA × gross margin ÷ churn – the gross profit an average customer brings over their lifetime, which is 1 ÷ churn months.
- CAC payback: CAC ÷ (ARPA × gross margin) – the number of months until a new customer has paid for themselves.
- Quick ratio: (new + expansion) ÷ (cancellations + downgrades) – growth against leakage. 4 or more is often seen as strong.
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
- David Skok – SaaS Metrics 2.0 (MRR, Churn, NRR, CAC, LTV, LTV:CAC ≥ 3, Amortisation < 12 Monate)
- Wikipedia – Churn rate (Kundenabwanderung)
As of: · Editorial policy
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