SaaS Metrics Calculator — MRR, ARR, LTV, CAC
Enter your customer count, ARPU, monthly churn, gross margin and CAC to instantly compute the five metrics every SaaS investor asks about: MRR, ARR, LTV, LTV:CAC ratio and CAC payback period.
$/month
%
%
$
Total monthly subscription revenue from all active customers
$19,800
MRRRetained MRR
98%
Churned MRR
2%
- 1
Monthly churn rate
2% ÷ 100 = 0.02 - 2
Monthly GM per customer
99 × 75% ÷ 100 = 74.25 - 3
Customer LTV
74.25 ÷ 0.02 = 3,712.50Gross-margin-adjusted profit per customer over their lifetime.
How does this calculator work?
MRR = Customers × ARPU, ARR = MRR × 12, LTV = (ARPU × Gross Margin%) / Monthly Churn, CAC Payback = CAC / (ARPU × GM%). For 200 customers at $99/month with 2% churn, 75% margin and $500 CAC: MRR ≈ $19,800, ARR ≈ $237,600, LTV ≈ $3,713, LTV:CAC ≈ 7.4:1, payback ≈ 6.7 months.
Formula
How this is calculated
Monthly Recurring Revenue (MRR) is the engine of a SaaS business: total customers multiplied by average monthly revenue per user. Annualising it gives ARR = MRR × 12 — the headline figure used in funding conversations. Both metrics assume a stable base; in practice, MRR changes each month with new sales, expansions, contractions and churn.
Customer Lifetime Value (LTV) answers "how much profit does a customer generate before they cancel?" The gross-margin-adjusted formula — (ARPU × GM%) / monthly churn — is the standard because it measures profit, not revenue. The LTV:CAC ratio compares that lifetime value to what it cost to acquire the customer; a ratio below 3:1 often signals that the business is burning money on acquisition. The CAC payback period tells you how many months of gross-margin revenue are needed to break even on the cost of acquiring one customer — many high-growth SaaS companies target under 12 months.
The donut chart shows what portion of MRR is churned each month. The smaller that red slice, the healthier the retention engine and the higher the LTV. These are simplified, point-in-time estimates; cohort analysis over real historical data is needed for precise unit economics.
Frequently asked questions
The SaaS industry benchmark is ≥ 3:1. Below 3:1 suggests the business may not recover its acquisition costs quickly enough. Above 5:1 can paradoxically signal underinvestment in sales and marketing.
Most investors consider less than 12 months excellent for a B2B SaaS product. Consumer SaaS often targets 6 months or less. Payback periods over 18 months create cash-flow pressure, especially without large funding reserves.
MRR counts only the recurring subscription portion. One-time setup fees, professional services revenue and other non-recurring items are excluded. Keeping MRR "clean" gives a stable baseline for forecasting growth and churn.
Also known as
TG we-Calculate Editorial Team. (2026). SaaS Metrics Calculator — MRR, ARR, LTV, CAC [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/saas-metrics-calculator
TG we-Calculate Editorial Team. "SaaS Metrics Calculator — MRR, ARR, LTV, CAC." TG we-Calculate. 2026. https://we-calculate.com/calculator/saas-metrics-calculator.
TG we-Calculate Editorial Team, "SaaS Metrics Calculator — MRR, ARR, LTV, CAC," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/saas-metrics-calculator
@misc{wecalculate_saas_metrics_calculator, title = {SaaS Metrics Calculator — MRR, ARR, LTV, CAC}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/saas-metrics-calculator}}, year = {2026}, note = {TG we-Calculate} }
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