AVAILABLE FOR WEB, FLUTTER & QA PROJECTS
How to use this tool
1. Configure Subscription Tiers
Set prices and customer distribution across Starter, Professional, and Enterprise plans.
2. Input Customer Acquisition & Churn
Enter monthly customer churn percentage and Customer Acquisition Cost (CAC).
3. Set Expansion & Billing Frequency
Add estimated monthly expansion revenue and the percentage of users choosing annual billing.
4. Analyze Key SaaS Metrics
Review MRR, ARR, ARPU, Customer Lifetime Value (LTV), and LTV:CAC health ratio.
Formula or logic used
SaaS Economics & Lifetime Value Formulas
SaaS financial health is measured through recurring cash flows, retention length, and the capital efficiency of customer acquisition.
Monthly Recurring Revenue (MRR): $\text{MRR} = \sum (\text{Users}_{\text{tier}} \times \text{Price}_{\text{tier}}) + \text{Expansion MRR}$Annual Recurring Revenue (ARR): $\text{ARR} = \text{MRR} \times 12$Average Revenue Per User (ARPU): $\text{ARPU} = \frac{\text{MRR}}{\text{Total Active Users}}$Customer Lifetime Value (LTV): $\text{LTV} = \frac{\text{ARPU} \times \text{Gross Margin \%}}{\text{Monthly Churn Rate}}$LTV to CAC Ratio: $\text{Ratio} = \frac{\text{LTV}}{\text{CAC}}$ (Target: $\ge 3.0x$)
Examples
Example 1: B2B Micro-SaaS Product
Indicates exceptional unit economics with strong expansion potential and low customer acquisition costs.
Example 2: Developer Tooling Startup
Acceptable economics, but improving churn from 5% to 3% would dramatically boost enterprise valuation.
Common use cases
Subscription Tier Optimization
Simulate pricing changes from $29 to $49 to evaluate the net revenue impact against potential conversion drops.
Investor Pitch & Cap Table Modeling
Prepare credible MRR, ARR, and LTV:CAC projections for pre-seed and seed venture discussions.
Churn Sensitivity Analysis
Quantify exactly how much revenue a 1% reduction in monthly customer churn saves over a 12-month period.
Annual vs Monthly Cash Flow Planning
Model upfront cash collection when offering 15-20% discounts for annual commitments.
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Frequently asked questions
What is an ideal LTV:CAC ratio for early-stage SaaS?
A healthy SaaS benchmark is 3.0x or higher. A ratio below 2.0x means you are spending too much to acquire customers, while a ratio above 5.0x often indicates you could grow faster by spending more on marketing.
How does annual prepay affect MRR?
Annual subscriptions provide immediate cash flow upfront, but for MRR calculations, the annual contract value must be divided by 12 to normalize recurring monthly revenue.
What is acceptable monthly churn for B2B vs B2C SaaS?
B2B SaaS typically targets 1% to 2% monthly customer churn (with negative net revenue churn through expansion). B2C SaaS typically experiences higher churn, ranging between 3% and 7% monthly.
What is the CAC Payback Period?
CAC Payback is the number of months required for a customer to generate enough gross profit to repay the sales and marketing spend invested to acquire them (target: under 12 months).
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