What is a good LTV to CAC ratio?

3:1 is the usual benchmark; below 1:1 loses money on every customer, far above 5:1 often means under-investing in growth.

What is net revenue retention?

Revenue from last year’s customers today, including upgrades and downgrades, as a share of what they paid then. Above 100% means the base grows without new sales.

What is the rule of 40?

Revenue growth rate plus profit margin should exceed 40%; it trades growth against profitability in one number.

Guide · 12 tools

SaaS metrics

ARR and MRR, CAC and LTV, churn and net revenue retention, payback, magic number, quick ratio, rule of 40, pricing and trial conversion: the numbers investors and operators track.

Subscription businesses run on a shared vocabulary of metrics, and each one has a precise definition that is easy to get wrong. These calculators apply the standard formulas and explain what a good number looks like at each stage.

They work with any currency and any billing period.

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Revenue

Recurring revenue, retention and growth efficiency.

Business & Start-upsARR CalculatorCalculate annual recurring revenue from the number of paying customers and their average monthly or yearly subscription price.Annual recurring revenue: $370,000Open the calculator Business & Start-upsMRR CalculatorCalculate monthly recurring revenue from recurring subscriptions and plan values.Monthly recurring revenue: $63,000Open the calculator Business & Start-upsSaaS Metrics CalculatorSee ARR, average revenue per customer, simplified lifetime value and monthly surplus from subscription business inputs.Annual recurring revenue: $750,000Open the calculator Business & Start-upsNet Revenue Retention CalculatorCalculate NRR and GRR from expansion, contraction and churn, and see whether growth is coming from your existing customers.Net revenue retention: 107.0%Open the calculator Business & Start-upsChurn Rate CalculatorCalculate customer churn rate from customers at the start of a period and customers lost.Churn rate: 2.5%Open the calculator Business & Start-upsSaaS Magic Number CalculatorCompute the SaaS magic number from quarterly revenue growth and prior-quarter spend, and decide whether to invest more in sales.SaaS magic number: 1.3:1Open the calculator

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Customers

What one costs, what one is worth and how fast it pays back.

Business & Start-upsCAC CalculatorCalculate customer acquisition cost from sales and marketing spend and new customers acquired.Customer acquisition cost: $250Open the calculator Business & Start-upsLTV CalculatorEstimate simplified subscription customer lifetime value from average monthly revenue, gross margin and monthly churn.Estimated customer LTV: $5,000Open the calculator Business & Start-upsLTV:CAC Ratio CalculatorCompare customer lifetime value with acquisition cost and calculate the LTV:CAC ratio.LTV:CAC ratio: 3.33:1Open the calculator Business & Start-upsCAC Payback CalculatorFind how many months a new customer takes to repay their acquisition cost on gross margin, and whether to scale spend.Months to recover the cost of a customer: 10.3 monthsOpen the calculator

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Pricing

Tiers, discounts and annual plans.

Business & Start-upsSaaS Pricing Model CalculatorCompare per-seat, usage-based and tiered pricing on your own customer base and see which earns more revenue.Tiered pricing earns the most MRR: $110,000Open the calculator Business & Start-upsPricing Strategy CalculatorCompare cost-plus, value-based and competitor-anchored prices for a product and see the profit each one produces.Competitor-anchored price earns the most profit: $82Open the calculator

Common questions

SaaS metrics: the questions people ask

What is a good LTV to CAC ratio?: 3:1 is the usual benchmark; below 1:1 loses money on every customer, far above 5:1 often means under-investing in growth.
What is net revenue retention?: Revenue from last year’s customers today, including upgrades and downgrades, as a share of what they paid then. Above 100% means the base grows without new sales.
What is the rule of 40?: Revenue growth rate plus profit margin should exceed 40%; it trades growth against profitability in one number.

Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice.

Revenue

Customers

Pricing

SaaS metrics: the questions people ask

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