SaaS Metrics Calculator
Calculate MRR, ARR, LTV, CAC, and key SaaS KPIs
Key SaaS Metrics
Understanding SaaS Metrics
A healthy SaaS typically has LTV/CAC > 3, CAC payback < 12 months, monthly churn < 5%, and NRR > 100%. Use these benchmarks to evaluate your business health.
Key SaaS Metrics Explained
MRR & ARR
Monthly Recurring Revenue (MRR) is your predictable monthly income from subscriptions. Annual Recurring Revenue (ARR) is MRR × 12, representing your annual run rate.
LTV & CAC
Customer Lifetime Value (LTV) is the total revenue you expect from a customer. Customer Acquisition Cost (CAC) is what you spend to acquire them. A healthy LTV/CAC ratio is 3:1 or higher.
Churn Rate
Monthly churn measures the percentage of revenue lost each month to cancellations. Gross MRR churn excludes expansion revenue, while net MRR churn accounts for upgrades and expansions.
CAC Payback Period
The number of months needed to recover your customer acquisition cost from gross profit. Most healthy SaaS businesses target a payback period under 12 months.
Benchmarking Your Metrics
| Metric | Weak | Healthy | Excellent |
|---|---|---|---|
| LTV/CAC | < 1 | 1-3 | > 3 |
| CAC Payback | > 24 mo | 12-24 mo | < 12 mo |
| Monthly Churn | > 10% | 5-10% | < 5% |
| Net Revenue Retention | < 80% | 80-100% | > 100% |