SaaS Metrics Calculator
Analyze your CAC, LTV, and Payback Period to determine if your marketing is profitable.
1. Acquisition (CAC)
Total Sales & Marketing Spend
$
New Customers Acquired
2. Lifetime Value (LTV)
Avg. Monthly Revenue Per User
$
Gross Margin
%
Monthly Churn Rate
%
⚠️ Invalid inputs. Ensure customers, margin, and churn rate are greater than 0.
Understanding SaaS Metrics
In a recurring revenue business, you aren't just selling a product once; you are acquiring a stream of revenue. Your success depends on acquiring that stream for less than it's worth.
- CAC (Customer Acquisition Cost): The total cost of sales and marketing divided by the number of new customers. If you spend $1,000 on ads and get 10 customers, your CAC is $100.
- LTV (Lifetime Value): The total gross profit a customer will generate before they cancel (churn). Formula:
(ARPU × Gross Margin %) ÷ Churn Rate. - The LTV:CAC Ratio: This is the ultimate indicator of your marketing efficiency.
- < 1:1 - You lose money on every customer.
- 1:1 to 2:1 - Surviving, but growth is expensive and risky.
- 3:1 - The Industry Gold Standard. A highly profitable, scalable business.
- > 5:1 - You are likely under-investing in marketing and leaving growth on the table.
- Payback Period: How many months it takes for a customer's monthly revenue to pay back their initial acquisition cost. Most startups aim for a payback period of under 12 months.