SaaS Metrics Calculator
Calculate LTV, CAC, payback period, and profitability metrics for your SaaS business
Calculate Core SaaS Metrics
Total cost to acquire one customer
Monthly revenue per customer
Revenue remaining after COGS
Percentage of customers lost monthly
Core SaaS Metrics Results
Enter your SaaS metrics to calculate business performance
Example Calculation
SaaS Company Example
CAC: $100
ARPA: $20/month
Gross Margin: 80%
Churn Rate: 2%
Results
LTV = ($20 × 80%) / 2% = $800
LTV:CAC = $800 / $100 = 8:1
CAC Payback = $100 / ($20 × 80%) = 6.25 months
Customer Profitability = $700
SaaS Metrics Benchmarks
LTV to CAC Ratio
Target: 3:1 or higher
Excellent: 5:1+
CAC Payback
Target: Under 12 months
Excellent: Under 6 months
Churn Rate
Target: Under 5% monthly
Excellent: Under 2% monthly
Key SaaS Metrics
LTV (Lifetime Value)
Total revenue from customer relationship
CAC (Customer Acquisition Cost)
Cost to acquire one customer
CAC Payback Period
Time to recover acquisition cost
Customer Profitability
Total profit per customer (LTV - CAC)
Understanding SaaS Metrics
What are SaaS Metrics?
SaaS metrics are key performance indicators that help Software as a Service businesses measure customer value, acquisition efficiency, and long-term profitability. These metrics are essential for making informed business decisions and securing investment.
Why are SaaS Metrics Important?
- •Determine sustainable customer acquisition costs
- •Optimize pricing and product strategies
- •Forecast cash flow and funding requirements
- •Support business valuation and investment decisions
SaaS Metrics Formulas
LTV = (ARPA × Gross Margin) / Churn Rate
CAC Payback = CAC / (ARPA × Gross Margin)
LTV to CAC = LTV / CAC
Customer Profitability = LTV - CAC
Optimization Strategies:
- • Increase ARPA through upselling and pricing optimization
- • Reduce churn with better onboarding and customer success
- • Lower CAC through efficient marketing channels
- • Improve gross margins by optimizing costs