Guide · 17 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 Quick Ratio CalculatorCompare the MRR you add with the MRR you lose to see how efficiently you grow.Quick ratio: 3.2Open the calculator Business & Start-upsRule of 40 CalculatorCheck whether growth plus profit margin clears 40, the benchmark investors use for healthy SaaS.Rule of 40 score: 35Open 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 Business & Start-upsUnit Economics CalculatorWork out contribution margin per unit and how many units cover fixed costs.Contribution per unit: $14Open the calculator Business & Start-upsTrial Conversion CalculatorFollow visitors through sign-up, activation and paid conversion to find the step that would add most revenue.New MRR a month: $10kOpen 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 Business & Start-upsAnnual Plan Discount CalculatorDecide how much to discount an annual plan: what the cash up front and lower churn are worth against the revenue given up.Annual plan worth more by: $710Open 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.